Exercise 5-18 (Part Level Submission)

The comparative balance sheets of Pina Corporation at the beginning and end of the year 2017 appear below.

PINA CORPORATION BALANCE SHEETS
		Dec. 31, 2017			Jan. 1, 2017			Inc./Dec.
Assets
Cash		$21,880			$15,320			$6,560	Inc.
Accounts receivable		107,880			90,320			17,560	Inc.
Equipment		40,880			24,320			16,560	Inc.
Less: Accumulated Depreciation-Equipment		(17,000	)		(11,000	)		6,000	Inc.
Total		$153,640			$118,960
Liabilities and Stockholders Equity
Accounts payable		$21,880			$17,320			4,560	Inc.
Common stock		101,880			82,320			19,560	Inc.
Retained earnings		29,880			19,320			10,560	Inc.
Total		$153,640			$118,960

Net income of $45,880 was reported, and dividends of $35,320 were paid in 2017. New equipment was purchased and none was sold.

Compute the current ratio (current assets current liabilities) as of January 1, 2017, and December 31, 2017. (Round ratios to 1 decimal place., e.g. 4.5.)

Compute free cash flow for the year 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)