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

Additional information:

1. Sales were $608 000.

2. Current liabilities were $202 800 in 2017 and $203 500 in 2016. 

3. Total liabilities were $505 000 in 2017 and $306 500 in 2016.

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.  

Transcribed Image Text:

CALGARY LTD Statement of cash flows (simplified) for the year ended 31 December 2017 ($'000) Net cash provided by operating activities Cash flows from investing activities Additions to property, plant and equipment Proceeds from the sale of non-current assets Net cash used by investing activities Net cash used by financing activities $(32560) 164 $101 344 (32 396) (35 692)