Boom Ltd has the following comparative data. ...
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Accounting
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 |
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