Question: 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

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

Dividends paid

$640

120

820

220


$680

135

280

220


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.

Step by Step Solution

★★★★★

3.40 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Intermediate Accounting Questions!

Q:

When we are asked to write a check to make a payment (yes, by the way, every time we make a debit transaction with our debit card, we are effectively writing a check for a payment that is being...

Q:

Could you finish this for me? I made it to page 5, but I am running short on time and my conceptualization is lacking. If not, maybe help me figure it out? Annual Report Project Lowe's Companies,...

Q:

Could you finish this for me? I made it to page 5, but I am running short on time and my conceptualization is lacking. If not, maybe help me figure it out? Annual Report Project Lowe's Companies,...

Q:

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:...

Q:

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 2017 and 2016: 1....

Q:

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....

Q:

For each of the following transactions on the statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section (I), or in the...

Q:

For each of the following transactions on the statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section (I), or in the...

Q:

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...

Q:

Presented below are the balance sheets of Trout Corporation as of December 31, Year 1 and Year 2, and the income statement for the year ended December 31, Year 2. The statement of retained earnings...

Q:

A researcher found the solubility of lead(II) bromide in 0.100 M NaBr to be 1.31 g/L. What is the solubility product of lead(II) bromide?

Q:

At the end of 2007, its first year of operations, the Beattie Company reported taxable income of $38,000 and pretax financial income of $34,400. The difference is due to the way the company handles...

Q:

With reference to Table 7.3, explain how education impacts upon earnings of an individual. Table 7.3 After-tax earnings by educational attainment (USA, 2011-2012) Less than college graduate College...

Q:

If \(F(t)=F_{0} \sin \omega t\), what values of \(\omega\) will lead to the presence of the following? (a) A primary resonance (b) A superharmonic resonance (c) A subharmonic resonance k = 1000 N/m k...

Q:

Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldsons 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Dolds journal entries for the initial...

Q:

On October 1, 2010, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables...

Q:

Wood Incorporated factored $150,000 of accounts receivable with Engram Factors Inc. on a without-recourse basis. Engram assesses a 2% finance charge of the amount of accounts receivable and retains...

Q:

When evaluating capital budgeting projects, which of the following would NOT necessarily be an indicator of an acceptable project? an NPV > $0 an IRR > the project's required rate of return an IRR >...

Q:

Exercise 3-10 Computing and interpreting profit margin LO A1 r answers to 1 decmal

Q:

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzerias owner has determined that the shop...