Delilah, Inc., presents the following comparative balance sheets and income statement (all amounts in thousands of dollars):
1 Includes interest paid in cash of $23.
-See information regarding Delilah,Inc.above.The following additional information is available:
1.Fully depreciated equipment costing $6,000 was abandoned on the first business day of 2014.
2.A building to store materials was acquired for $26,000.
3.A stock dividend of $20,000 was declared and distributed.
4.A cash dividend of $8,000 was declared and distributed.
5.Additional stock was sold during 2014 for cash.
Required:
1.Compute the following ratios:
a.Cash Flow-to-Net Income
b.Cash Flow Adequacy
c.Cash Times Interest Earned
2.What cash flow statement pattern does Delilah,Inc.,exhibit?

Question

Delilah, Inc., presents the following comparative balance sheets and income statement (all amounts in thousands of dollars):
  1 Includes interest paid in cash of $23.
-See information regarding Delilah,Inc.above.The following additional information is available:
1.Fully depreciated equipment costing $6,000 was abandoned on the first business day of 2014.
2.A building to store materials was acquired for $26,000.
3.A stock dividend of $20,000 was declared and distributed.
4.A cash dividend of $8,000 was declared and distributed.
5.Additional stock was sold during 2014 for cash.
Required:
1.Compute the following ratios:
a.Cash Flow-to-Net Income
b.Cash Flow Adequacy
c.Cash Times Interest Earned
2.What cash flow statement pattern does Delilah,Inc.,exhibit?

Quizplus · Accepted Answer

The Answer of Delilah, Inc., presents the following comparative balance sheets and income statement (all amounts in thousands of dollars):
  1 Includes interest paid in cash of $23.
-See information regarding Delilah,Inc.above.The following additional information is available:
1.Fully depreciated equipment costing $6,000 was abandoned on the first business day of 2014.
2.A building to store materials was acquired for $26,000.
3.A stock dividend of $20,000 was declared and distributed.
4.A cash dividend of $8,000 was declared and distributed.
5.Additional stock was sold during 2014 for cash.
Required:
1.Compute the following ratios:
a.Cash Flow-to-Net Income
b.Cash Flow Adequacy
c.Cash Times Interest Earned
2.What cash flow statement pattern does Delilah,Inc.,exhibit?