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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 13-10 Working Backward: Debt Service Coverage
Madison Corp. reported the following in the Current Assets section of its comparative balance sheets:
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December 31, 2014 |
December 31, 2013 |
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Current Liabilities: Current portion of notes payable |
 $400,000 |
 $600,000 |
Supplemental information at the bottom of Madison’s 2014 statement of cash flows was as follows:
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 |
2014 |
2013 |
|
Interest paid |
$135,000 |
$155,000 |
|
Income taxes paid |
550,000 |
425,000 |
Madison’s 2014 debt service coverage ratio was 20 to 1. Determine Madison’s cash flow from operations for 2014.
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LO6
EXAMPLE 13-20
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EXAMPLE 13-19
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EXAMPLE 13-20
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