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Space Galaxy Ltd. Statement of Financial Position December 31, 2018 Assets Cash 4,000.00 Accounts receivable 39,000.

Space Galaxy Ltd.

Statement of Financial Position

December 31, 2018

Assets   

Cash       4,000.00

Accounts receivable                                             39,000.00

Buildings and equipment                             154,000.00

Accumulated depreciation—  buildings and equipment                     (46,000.00)     Patents                                                              24,000.00

$215,000

 

  Liabilities & Shareholders' Equity

Accounts payable                   $28,000

Bonds payable                         54,000

Common shares                       69,000

Retained earnings                   64,000

$215,000

Space Galaxy Ltd.

Statement of Cash Flows

For the Year Ended December 31, 2018

 

Cash flows from operating activities

           Net Income                                                                                                             $60,000            

Adjustments to reconcile net income to net cash    provided by operating activities:

        Increase in accounts receivable                                                        $(19,000)

          Increase in accounts payable                                                       7,000

           Depreciation—buildings and equipment                                    12,000

         Gain on sale of equipment                                                            (7,000)

         Amortization of patents                                                                  3,000 (4,000)

Net cash provided by operating activities                                                         56,000

 

Cash flows from investing activities

  Sale of equipment                                                                                   14,000

  Purchase of land                                                                                    (27,000)

    Purchase of buildings and equipment                                                 (52,000)

Net cash used by investing activities                                                           (65,000)

 

Cash flows from financing activities

   Payment of cash dividend                                                                      (25,000)

  Sale of bonds                                                                                              45,000

Net cash provided by financing activities                                                         20,000

 

Net increase in cash                                                                                   11,000

Cash, January 1, 2018                                                                                33,000

Cash, December 31, 2018                                                                        $ 44,000

 

At the beginning of 2018, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Space Galaxy's bonds have been issued at par.


What is the current cash debt coverage ratio?

What is the cash debt coverage ratio?

What is the free cash flow?

Top Answer

Current cash debt coverage ratio = 56000/((21000+28000)/2)) =... View the full answer

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