you are provided with the following transactions that took place during the year 535411

Transactions

Free Cash
Flow
($125,000)

CurrentCash
Debt Coverage
Ratio
(0.5 times)

Cash Debt
Coverage Ratio
(0.3 times)

(a) Recorded credit sales $2,500.

(b) Collected $1,900 owed by customers.

(c) Paid amount owed to suppliers $2,750.

(d) Recorded sales returns of $500 and credited the customer”s account.

(e) Purchased new equipment $5,000; signed a long-term note payable

for the cost of the equipment.

(f ) Purchased a patent and paid $65,000 cash for the asset.