shown below and on the next page are comparative balance 243113

Shown below and on the next page are comparative balance sheets for Padgett Company.

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Additional information:

1. Net income for 2012 was $93,000.

2. Depreciation expense was $34,000.

3. Cash dividends of $39,000 were declared and paid.

4. Bonds payable amounting to $50,000 were redeemed for cash $50,000.

5. Common stock was issued for $42,000 cash.

6. No equipment was sold during 2012.

7. Land was sold for its book value.

Instructions

(a) Prepare a statement of cash flows for 2012 using the indirect method.

(b) Compute these cash-based ratios:

(1) Current cash debt coverage.

(2) Cash debt coverage.

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