Presented below is a simplified statement of cash flows for Spectre Ltd. 

Additional information:

1. Sales were $1 216 000.

2. Current liabilities were $403 000 in 2016 and $406 500 in 2015. 

3. Total liabilities were $990 800 in 2016 and $608 500 in 2015.

Required

(a) Calculate:

1. Free cash flow.

2. Capital expenditure ratio.

3. Current cash debt coverage.

4. Cash debt coverage.

5. Cash return on sales ratio.

(b) Based on your calculations, what is your evaluation of this entity? Explain your answer.  

Transcribed Image Text:

SPECTRE LTD Statement of cash flows (extract) for the year ended 31 December 2016 ($'000) Net cash provided by operating activities Cash flows from investing activities Additions to property, plant and equipment Proceeds from the sale of non-current assets Net cash used by investing activities Net cash used by financing activities ($65 120) 328 $202 688 (64 792) (71 384)