QUESTION 1

Boom Ltd has the following comparative data.

BOOM LTD

Statement of financial position as at 30 June

2020 2019

$ $

Cash 20,050 29,380

Receivables (net) 63,560 57,190

Inventories 59,200 51,300

Property, plant and equipment (net) 207,980 179,170

350,790 317,040

Accounts payable 47,670 57,610

Loan payable (15%) 99,000 99,000

Share capital, $10 each 138,000 118,000

Retained earnings 66,120 42,430

350,790 317,040

Additional information for 2020:

1 Profit was $19,120

2 Sales on account were $376,000. Sales returns and allowances amounted to $29,700

3 Cost of sales was $199,400.

4 Net cash provided by operating activities was $52,400

5 The loan payable is a non-current liability in both years.

6 Depreciation for the year was $22,500 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 flow