Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a comparative statement of financial position for

A comparative statement of financial position for Riverbed Industries Inc. follows: ...

80.2K

Verified Solution

Question

Accounting

A comparative statement of financial position for Riverbed Industries Inc. follows:

RIVERBED INDUSTRIES INC. Statement of Financial Position December 31, 2020
December 31
Assets 2020 2019
Cash $ 22,000 $ 34,900
Accounts receivable 100,500 54,600
Inventory 222,000 186,200
Land 71,500 112,000
Equipment 260,000 195,500
Accumulated depreciationequipment ( 69,000 ) ( 43,000 )
Total $ 607,000 $ 540,200
Liabilities and Shareholders Equity
Accounts payable $ 54,252 $ 60,000
Bonds payable 152,500 200,000
Common shares 216,000 165,000
Retained earnings 184,248 115,200
Total $ 607,000 $ 540,200

Additional information:

1. Net income for the fiscal year ending December 31, 2020, was $ 129,000.
2. Cash dividends of $ 60,000 were declared and paid. Dividends paid are treated as financing activities.
3. Bonds payable amounting to $ 50,000 were retired through issuance of common shares.
4. Land was sold at a gain of $5,000.
5. No equipment was sold during the year.

Determine the current cash debt ratio and free cash flow ratio for 2020.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students