the following selected financial statement information is for Stevens Company December 31 2017 2016 Changes in...

the following selected financial statement information is for Stevens Company

December 31
2017   2016   Changes in assets
Current Assets
   Cash $ 86,000   $71,000
   Accounts receivable 24,000 20,000
   Merchandise inventory 20,000 27,000
   Prepaid expenses 10,000 8,000

Current Liabilities
   Accounts payable    41,000   44,000

Income taxes payable   6,000   11,000

Other data for the Year Ended December 31, 2017
From the income statement:
   Net income   $146,000
   Depreciation expense   32,000
   Loss on sale of equipment   9,000

From accounting records:
   Capital expenditures   44,000

Required:
a.   Using the indirect method, prepare the operating activities section of the statement of cash flows for Stevens Company for the year ended December 31, 2017.

b.   Calculate the following cash measures:
   (1)   Operating cash flow ratio (round to the nearest tenth of a percent).
   (2)   Capital expenditure ratio (round to the nearest tenth of a percent).
   (3)   Free cash flow

Expert Solution

ekkarill92 answered 1 hour ago

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