The comparative balance sheets for Beneteau Company 

Assets 2014 2013 

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Cash $37,000 $31,000 
Acct Receivable(net) 80,000 60,000 
Prepaid Insurance 22,000 17,000 
Land 18,000 40,000 
Equipment 70,000 60,000 
Accum Depreciation (20,000) (13,000) 

Total Assets 7,000 $195,000 

Liabilities & Stockholders’ Equity 

Acct Payable $12,000 $6,000 
Bonds Payable 27,000 19,000 
Common Stock 140,000 115,000 
Retained Earnings 28,000 55,000 

Total Liabilities & SE $207,000 $195,000 

Additional Info: 
1. Net loss for 2014 is $12,000. Net sales for 2014 are $250,000 
2. Cash dividends of $15,000 were declared and paid 2014 
3. Land was sold for cash at a loss of $2,000 This was the only land transaction during the yr. 
4. Equip. with a cost of $15,000 & accumulated dep. of $10,000 was sold for $5,000 cash. 
5. $12,000 of bonds were retired during the yr. at carrying(book) value 
6. Equipment was acquired for common stock. Fair value of the stock at time of exchange was $25,000.

(a) Prepare statement of cash flows for the yr ended Dec 31,2014, using the indirect method. 
(b) Compute current cash debt coverage and cash debt coverage. 

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