The Dakota Corporation Prepared,for 2014 and 2013,the Following Balance Sheet

Essay

The Dakota Corporation prepared,for 2014 and 2013,the following balance sheet data:

Additional information:
(a)Sold available-for-sale securities (not cash equivalents)costing $87,750 for $90,000.
(b)Equipment costing $18,750 with a book value of $3,750 was sold for $4,500.
(c)Issued 8% bonds payable at par,$375,000.
(d)Purchased new equipment for cash,$310,125.
(e)Paid cash dividends of $22,500 during the year.
(f)Net income for 2014 was $45,000.
(g)Proceeds from the notes payable were used for operating purposes.
Prepare a cash flow statement for Dakota Corporation for 2014,using the indirect method.Calculate the Cash Flow to Net Income and the Cash Flow Adequacy ratios.