Financial statements for Space Galaxy Ltd. are presented below:

Space Galaxy Ltd.

Statement of Financial Position

December 31, 2020

AssetsLiabilities & Shareholders' Equity

Cash$44,000Accounts

payable$28,000

Accounts receivable39,000Bonds

payable54,000

Buildings and equipment154,000

Accumulated depreciation

buildings and equipment (46,000)Common shares69,000

Patents24,000Retained

earnings64,000

$215,000$215,000

Space Galaxy Ltd.

Statement of Cash Flows

For the Year Ended December 31, 2020

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 payable7,000

Depreciationbuildings and equipment12,000

Gain on sale of equipment(7,000)

Amortization of patent3,000 (4,000)

Net cash provided by operating

activities56,000

Cash flows from investing activities

Sale of equipment14,000

Purchase of land(27,000)

Purchase of buildings and equipment(52,000)

Net cash used by investing

activities(65,000)

Cash flows from financing activities

Payment of cash dividend(25,000)

Sale of bonds45,000

Net cash provided by financing

activities20,000

Net increase in cash11,000

Cash, January 1, 202033,000

Cash, December 31, 2020$44,000

At the beginning of 2020, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Space Galaxy's bonds have been issued at par.

Required

1.Calculate the current cash debt coverage ratio

2.Calculate the cash debt coverage ratio

3.Calculate the free cash flow