Question: Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30 June 2020 2019 Cash Receivables (net) Inventories Property, plant

 Boom Ltd has the following comparative data. BOOM LTD Statement of
financial position as at 30 June 2020 2019 Cash Receivables (net) Inventories

Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30 June 2020 2019 Cash Receivables (net) Inventories Property, plant and equipment (net) 20,290 64,300 61,110 200,840 346,540 48,370 95,000 134,000 69.170 346,540 30,330 57,950 52,520 174,880 315,680 57,520 95,000 126,000 36,890 315,410 Accounts payable Loan payable (15%) Share capital, $10 each Retained earnings Additional information for 2020: 1. Profit was $19,530 2. Sales on account were $389,600. Sales returns and allowances amounted to $30,800 3. Cost of sales was $200,900 4. Net cash provided by operating activities was $51,100 5. The loan payable is a non-current liability in both years. 6. Depreciation for the year was $22,400 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

Step by Step Solution

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 Accounting Questions!