Essay
Delilah, Inc., presents the following comparative balance sheets and income statement (all amounts in thousands of dollars):
1Includes interest paid in cash of $23.
-See information regarding Delilah,Inc.above.The following additional information is available:
1.Fully depreciated equipment costing $6,000 was abandoned on the first business day of 2014.
2.A building to store materials was acquired for $26,000.
3.A stock dividend of $20,000 was declared and distributed.
4.A cash dividend of $8,000 was declared and distributed.
5.Additional stock was sold during 2014 for cash.
Required:
1.Compute the following ratios:
a.Cash Flow-to-Net Income
b.Cash Flow Adequacy
c.Cash Times Interest Earned
2.What cash flow statement pattern does Delilah,Inc.,exhibit?
Correct Answer:

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