Financial statements for Space Galaxy Ltd. are presented below:

Space Galaxy Ltd.

Statement of Financial Position

December 31, 2018

Assets		Liabilities & Shareholders Equity
Cash ................................................ $ 44,000		Accounts payable $ 28,000
Accounts receivable 39,000 Buildings and equipment 154,000 Accumulated depreciation		Bonds payable 54,000
buildings and equipment (46,000)		Common shares 69,000
Patents 24,000		Retained earnings 64,000
$215,000		$215,000

Space Galaxy Ltd.

Statement of Cash Flows

For the Year Ended December 31, 2018

Cash flows from operating activities

Net income $ 60,000 Adjustments to reconcile net income to net cash provided by operating activities:

Increase in accounts receivable $(19,000)

Increase in accounts payable 7,000

Depreciationbuildings and equipment 12,000

Gain on sale of equipment (7,000)

Amortization of patents 3,000	(4,000)
Net cash provided by operating activities Cash flows from investing activities Sale of equipment 14,000 Purchase of land (27,000) Purchase of buildings and equipment (52,000)	56,000
Net cash used by investing activities Cash flows from financing activities Payment of cash dividend (25,000) Sale of bonds 45,000	(65,000)
Net cash provided by financing activities	20,000
Net increase in cash	11,000
Cash, January 1, 2018	33,000
Cash, December 31, 2018	$ 44,000

At the beginning of 2018, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Space Galaxys bonds have been issued at par.

Required

1. Calculate the current cash debt coverage ratio

2. Calculate the cash debt coverage rati

3. Calculate the free cash flow