Statement of cash flows ratios.
Financial statements for Hilton Company are presented below: At the beginning of 2014, Accounts Payable amounted to $12,000 and Bonds Payable was $20,000.

Instructions
Calculate the following for Hilton Company:
a. Current cash debt coverage
b. Cash debt coverage
c. Free cash flow
d. Explain the purpose of free cash flow analysis.

Question

Statement of cash flows ratios.
Financial statements for Hilton Company are presented below:  At the beginning of 2014, Accounts Payable amounted to $12,000 and Bonds Payable was $20,000.

Instructions
Calculate the following for Hilton Company: 
a. Current cash debt coverage
b. Cash debt coverage
c. Free cash flow
d. Explain the purpose of free cash flow analysis.

Quizplus · Accepted Answer

The Answer of Statement of cash flows ratios.
Financial statements for Hilton Company are presented below:  At the beginning of 2014, Accounts Payable amounted to $12,000 and Bonds Payable was $20,000.

Instructions
Calculate the following for Hilton Company: 
a. Current cash debt coverage
b. Cash debt coverage
c. Free cash flow
d. Explain the purpose of free cash flow analysis.

Statement of Cash Flows Ratios