The balance sheet for Frankie Co. is shown below: Frankie Co. Balance Sheet At December 31, 2021 Assets: Cash $ 150 Short-term investments 200 Accounts receivable (net) 300 Inventories 450 Property, plant, and equipment (net) 1,100 Total assets $2,200 Liabilities and Shareholders' Equity: Current liabilities $ 450 Long-term liabilities 600 Paid-in capital 150 Retained earnings 1,000 Total liabilities and shareholders' equity $2,200 Selected Year 2021 income statement information for Frankie Co. includes: Net sales $7,700 Interest expense 90 Income tax expense 150 Net income 350 Frankie's times interest earned ratio for the year ended December 31, 2021 is nearest to: Group of answer choices 3.89 6.56 5.56 13.05

The balance sheet for Frankie Co. is shown below: Frankie Co. Balance Sheet At December 31, 2021 Assets: Cash $ 150 Short-term investments 200 Accounts receivable (net) 300 Inventories 450 Property, plant, and equipment (net) 1,100 Total assets $2,200 Liabilities and Shareholders' Equity: Current liabilities $ 450 Long-term liabilities 600 Paid-in capital 150 Retained earnings 1,000 Total liabilities and shareholders' equity $2,200 Selected Year 2021 income statement information for Frankie Co. includes: Net sales $7,700 Interest expense 90 Income tax expense 150 Net income 350 Frankie's times interest earned ratio for the year ended December 31, 2021 is nearest to: Group of answer choices 3.89 6.56 5.56 13.05

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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A comparative balance sheet for Gena Company appears below:GENA COMPANYComparative Balance SheetDec. 31, 2021 Dec. 31, 2020AssetsCash $ 34,000 $11,000Accounts receivable 21,000 13,000Inventory 35,000 17,000Prepaid expenses 6,000 9,000Long-term investments -0- 17,000Equipment 60,000 33,000Accumulated depreciation—equipment (20,000) (15,000)Total assets $136,000 $85,000Liabilities and Stockholders' EquityAccounts payable $ 17,000 $ 7,000Bonds payable 36,000 45,000Common stock 53,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $136,000 $85,000Additional information:1. Net income for the year ending December 31, 2021 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. Depreciation expense for the year was $5,000.InstructionsPrepare a full statement of cash flows for the year ended December 31, 2021, using the indirectmethod.
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Frankie Co. Balance Sheet At December 31, 2021
Assets:
Cash	$ 150
Short-term investments	200
Accounts receivable (net)	300
Inventories	450
Property, plant, and equipment (net)	1,100
Total assets	$2,200
Liabilities and Shareholders' Equity:
Current liabilities	$ 450
Long-term liabilities	600
Paid-in capital	150
Retained earnings	1,000
Total liabilities and shareholders' equity	$2,200

Net sales	$7,700
Interest expense	90
Income tax expense	150
Net income	350