Statement of cash flows ratios
Financial statements for Comet Ltd. are presented below:

At the beginning of 2020, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Comet’s bonds have been issued at par.
Instructions
Calculate the following for Comet Ltd.:
a) Current cash debt coverage ratio
b) Cash debt coverage ratio
c) Free cash flow

Question

Statement of cash flows ratios
Financial statements for Comet Ltd. are presented below:

At the beginning of 2020, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Comet’s bonds have been issued at par.
Instructions
Calculate the following for Comet Ltd.:
a) Current cash debt coverage ratio
b) Cash debt coverage ratio
c) Free cash flow

Quizplus · Accepted Answer

The Answer of Statement of cash flows ratios
Financial statements for Comet Ltd. are presented below:

At the beginning of 2020, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Comet’s bonds have been issued at par.
Instructions
Calculate the following for Comet Ltd.:
a) Current cash debt coverage ratio
b) Cash debt coverage ratio
c) Free cash flow

Statement of Cash Flows Ratios