The following are financial statements of Ohara Company.

Additional information: The net cash provided by operating activities for 2022 was $190,800. The cash used for capital expenditures was $92,000. The cash used for dividends was $31,000. The weighted-average common shares outstanding during the year was 50,000. 

Instructions 

a. Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (i) Working capital. (2021: $160,500) 

(ii) Current ratio. (2021: 1.65:1) 

(iii) Free cash fl ow. (2021: $48,700) 

(iv) Debt to assets ratio. (2021: 31%) (v) Earnings per share. (2021: $3.15) 

b. Using your calculations from part (a), discuss changes from 2021 in liquidity, solvency, and profi tability.

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Ohara Company Income Statement For the Year Ended December 31, 2022 Net sales $2,218,500 Cost of goods sold Selling and administrative expenses Interest expense Income tax expense 1,012,400 906,000 78,000 69,000 $ 153,100 Net income Ohara Company Balance Sheet December 31, 2022 Assets Current assets $ 60,100 84,000 Cash Debt investments Accounts receivable (net) 169,800 Inventory 145,000 Total current assets 458,900 Plant assets (net) 575,300 Total assets $1,034,200 Liabilities and Stockholders' Equity Current liabilities $ 160,000 Accounts payable Income taxes payable 35,500 Total current liabilities 195,500 Bonds payable 200,000 Total liabilities 395,500 Stockholders' equity Common stock 350,000 Retained earnings 288,700 Total stockholders' equity 638,700 Total liabilities and stockholders' equity $1,034,200