Cash Flow Ratios

Spencer Company reports the following amounts in its annual financial statements:

Cash flow from operating activities	$50,000			Capital expenditures*	$35,000
Cash flow from investing activities	(40,000)			Average current assets	80,000
Cash flow from financing activities	(5,000)			Average current liabilities	60,000
Net income	25,000			Total assets	150,000
* This amount is a cash outflow

a. Compute Spencers free cash flow. $Answer b. Compute Spencers operating-cash-flow-to-current-liabilities ratio. Answer c. Compute Spencers operating-cash-flow-to-capital-expenditures ratio. Answer (Round ratios to two decimal places.)