Question: You are provided with the following information from the statement of cash flows for Precedent Ltd: Required Calculate the following cash sufficiency ratios for Precedent

You are provided with the following information from the statement of cash flows for Precedent Ltd:

Cash flow from operating activities Repayment of long-term borrowings Assets acquired Dividends

Required
Calculate the following cash sufficiency ratios for Precedent Ltd for 2017 and 2016:
1. Cash flow adequacy ratio
2. Repayment of long-term borrowings ratio
3. Dividend payment ratio.

Cash flow from operating activities Repayment of long-term borrowings Assets acquired Dividends paid 2017 $640 120 820 220 2016 $680 135 280 220

Step by Step Solution

★★★★★

3.42 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

answer 1 Cash Flow Adequacy Ratio 2017 6... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Accounting Questions!

You are provided with the following information from the December 31, 2016 to 2018 balance sheets of Peguis Inc.: Required: a. Calculate the debt-to-equity ratio for each year. b. Describe how the...

You are provided with the following information from the equity section of Tingwick Ltd.'s balance sheet on December 31, 2016: Preferred shares-authorized, 5,000,000 shares; outstanding 2,000,000...

You are provided with the following information from the accounts of FRED Ltd for the year ending 30 June 2019. The accounting profit before income tax is $37,000. Numbers are in Australian Dollars....

You are provided with the following information from the statement of cash flows for Precedent Ltd. Required (a) Calculate the following cash sufficiency ratios for Precedent Ltd for 2025 and 2024:...

You are provided with the following information from the statement of cash flows for Precedent Ltd: 2017 2016 Cash flow from operating activities Repayment of long-term borrowings Assets acquired...

You are provided with the following information from the statement of cash flows for Precedent Ltd. Required Calculate the following cash sufficiency ratios for Precedent Ltd for 2020 and 2019: i....

The following information from the Statement of Cash Flows of Dome Ltd. as of December 31, 2020 is available: Net cash used by investing activities.......... (65,000) Net cash provided by financing...

Income statement and B/S are provided in attached documents. Question a:Prepare the statement of cash flows for Alderton Ltd for the year ended 31 December 2017, using the indirect method. Question...

38 FINANCIAL STATEMENT PREPARATION AND ANALYSIS The Louisiana Grill The Louisiana Grill (TLG) is a restaurant in Toronto. TLG is a regional restaurant created and operated by Alex Ven- tresca, a...

how do I do this I missed 2 weeks of class and have no clue what I am doing. All cases of acadeMIE DISTU Part One Instructions The financial information for the past two years (2016 and 2017) is...

The following information relates to WANNA Bhd. for the years ended 31 December 2016 and 2017. 31 Dec 2017 (RM) 31 Dec 2016 (RM) Motor vehicles (cost) Accumulated depreciation - motor vehicles Plant...

Parent bought all of the shares of Subsidiary as indicated below on December 31, 20X0. Sub's balance sheet at that time is shown below, along with the fair value (FV) of Sub's assets and liabilities...

What price should Hone's managers set for Standard desks to earn a $ 4 1 profit per desk?

define what is meant by research in the context of HRM&D and how it can contribute to effective policy and practice;

intermediate calculations. Round your answers to the nearest dollar. a. What is the Year-0 net cash flow? $ b. What are the net operating cash flows in Years 1, 2, and 3? Year 1:$ Year 2:\$ Year 3:$...

Your guardian invested $11,000 in an account 8 years ago. The investment earns 10.0% per annum compounding monthly. If there have been no withdrawals, the balance of the account is now (answer to the...

One of the incentives provided by Vietnam to attract IBM into setting up a local production facility is a 7 -year, USD79.4 million loan at 7.60%. The principal is to be repaid at the end of the 7th...