Condensed balance sheet and income statement data for Fellini Corporation are presented below.

FELLINI CORPORATION Balance Sheets December 31 Assets 2014 2013 Cash $ 50,000 $ 30,000 Receivables (net) 80,000 55,000 Other current assets 74,000 73,000 Long-term investments 78,000 54,000 Property, plant, and equipment (net) 520,000 407,000 Total assets $802,000 $619,000 Liabilities and Stockholders’ Equity 2014 2013 Current liabilities $ 88,000 $ 65,000 Long-term liabilities 90,000 70,000 Common stock 370,000 320,000 Retained earnings 254,000 164,000 Total liabilities and stockholders’ equity $802,000 $619,000 FELLINI CORPORATION Income Statements For the Years Ended December 31 2014 2013 Sales revenue $770,000 $800,000 Cost of goods sold 420,000 400,000 Operating expenses (including income taxes) 250,000 287,000 Net income $100,000 $113,000 Net cash provided by operating activities $165,000 $178,000 Cash used for capital expenditures $85,000 $45,000 Dividends paid $20,000 $13,000 Average number of shares outstanding 370,000 320,000 Instructions Compute the following values and ratios for 2013 and 2014.

(a) Earnings per share.

(b) Working capital.

(c) Current ratio.

(d) Debt to assets ratio.

(e) Free cash flow.

(f) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results of Fellini from 2013 to 2014.

AppendixLO1