Presented below is a condensed version of comparative balance sheets partial for Orozco Corporations for...
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Accounting
Presented below is a condensed version of comparative balance sheets partial for Orozco Corporations for the last two years at December 31.
2019
2018
Assets
Equipment
$260,000
$200,000
Liabilities
Accounts payable
34,000
47,000
Bonds payable
150,000
200,000
Additional information:
Net cash provided by operating activities for 2019 was $132,000
Cash dividends of $60,000 were declared and paid.
Bonds payable amounting to $50,000 were retired through issuance of common stock.
Net income for 2019 was $125,000
Instruction
Determine Orozco Corporations current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Comment on its liquidity and financial flexibility.
Answer & Explanation
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