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Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30 June 2020 2019 $ $ Cash 20,280 30,990Receivables (net)
Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30 June 2020 2019 $ $Cash 20,280 30,990Receivables (net) 62,860 58,170Inventories 57,620 49,680Property, plant and equipment (net) 205,470 175,370 346,230 314,210Accounts payable 52,350 60,350Loan payable (15%) 96,000 96,000Share capital, $10 each 135,000 121,000Retained earnings 62,880 36,860 346,230 314,210
Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30 June 2019 $ Cash Receivables (net) Inventories Property, plant and equipment (net) 2020 $ 20,280 62,860 57,620 205,470 346,230 52,350 96,000 135,000 62.880 346,230 Accounts payable Loan payable (1596) Share capital, $10 each Retained earnings 30,990 58,170 49,680 175.370 314.210 60,350 96,000 121,000 36,860 314.210 Additional information for 2020: 1 Profit was $20,870 2Sales on account were $371,600. Sales returns and allowances amounted to $31,500 3Cost of sales was $199,700 4Net cash provided by operating activities was $52,400 5The loan payable is a non-current liability in both years. 6Depreciation for the year was $20,500 and there were no disposals in the year. Required Calculate the following at 30 June 2020 (round your final answers to 2 decimal places): a) Current ratio. b) Quick ratio. c) Average collection period. d) Average days in inventory. e) Cash return on sales ratio. f) Cash debt coverage. g) Current cash debt coverage. h) Capital expenditure ratio i) Free cash flowStep by Step Solution
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