Presented below is a simplified statement of cash flows for Spectre Ltd. Additional information: 1. Sales were

Question:

Presented below is a simplified statement of cash flows for Spectre Ltd. 

Additional information:

1. Sales were $1 216 000.

2. Current liabilities were $403 000 in 2016 and $406 500 in 2015. 

3. Total liabilities were $990 800 in 2016 and $608 500 in 2015.


Required

(a) Calculate:

1. Free cash flow.

2. Capital expenditure ratio.

3. Current cash debt coverage.

4. Cash debt coverage.

5. Cash return on sales ratio.

(b) Based on your calculations, what is your evaluation of this entity? Explain your answer.  

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Related Book For  book-img-for-question

Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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