Exercise 3

Use the following data to calculate the liquidity and profitability ratios listed below.

Average common shares outstanding10,000Current liabilities$100,000

Capital expenditures$20,000Net income21,000

Cash provided by operating activities32,000Net sales150,000

Dividends paid5,000Total liabilities126,000

Current assets190,000Total assets210,000

Can you help meto

Compute the following:

(a)Current ratio.(d)Debt to assets ratio.

(b)Working capital.(e)Free cash flow.

(c)Earnings per share.

Exercise 4

The following items are taken from the financial statements of Grove Company for 2017:

Accounts payable$18,500

Accounts receivable8,000

Accumulated depreciation-equipment4,800

Bonds payable18,000

Cash24,000

Common stock25,000

Cost of goods sold27,000

Depreciation expense4,800

Dividends5,300

Equipment44,000

Interest expense2,500

Patents7,500

Retained earnings, January 116,000

Salaries and wages expense5,200

Sales revenue50,500

Supplies4,500

can you help me to make income statement and a retained earnings statement for Grove Company.