The following information is available for Benser Corporation.

2014 2013 Current assets $ 54,000 $ 36,000 Total assets 240,000 205,000 Current liabilities 22,000 30,000 Total liabilities 72,000 100,000 Net income 80,000 40,000 Net cash provided by operating activities 90,000 56,000 Preferred dividends 6,000 6,000 Common dividends 3,000 1,500 Expenditures on property, plant, and equipment 27,000 12,000 Shares outstanding at beginning of year 40,000 30,000 Shares outstanding at end of year 75,000 40,000

(a) Compute earnings per share for 2014 and 2013 for Benser, and comment on the change. Benser’s primary competitor, Matile Corporation, had earnings per share of $1 per share in 2014. Comment on the difference in the ratios of the two companies.

(b) Compute the current ratio and debt to assets ratio for each year, and comment on the changes.

(c) Compute free cash fl ow for each year, and comment on the changes.AppendixLO1