Dannys Books & Music Inc. reported the following selected information at March 31. 2010 Total current assets
Question:
Danny’s Books & Music Inc. reported the following selected information at March 31.
2010
Total current assets ............$262,787
Total assets ............... 439,832
Total current liabilities .......... 293,625
Total liabilities .............. 376,002
Cash provided by operating activities ..... 55,472
Calculate
(a) The current ratio,
(b) The debt to total assets ratio, and
(c) Free cash flow for March 31, 2010. The company paid dividends of $15,000 and spent $24,787 on capital expenditures.
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9780470377857
3rd Edition
Authors: Paul D. Kimmel
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