Gladys Inc. reported current assets totaling $65,800 and current liabilities totaling $28,750 at December 31, Year 2The company's income statement and statement of cash flow for Year 2 appear below:

Income Statement for Year 2 :Sales $283,200 Cost of goods sold 105,000 Depreciation expense 16,400 Other operating expenses 60,500 Interest expense 6,300 Income taxes expense 10,700 Net income $ 84,300

Statement of Cash Flow for Year 2 :Operating activities Net income $ 84,300 Depreciation expense 16,400 Accounts receivable (4,750) Inventory 150 Accounts payable (3,050) Income taxes payable 1,350 Cash flow from operations $94,400 Investing activities Marketable securities $ 1,000 Equipment (49,800) Cash flow for investing (48,800) Financing activities Common stock issued 9,500 Note payable borrowings 9,950 Note payable payments (8,750) Dividends paid (15,500) Cash flow for financing (4,800) Net increase in cash 40,800 Cash, beginning of year 25,150 Cash, end of year $65,950

Calculate the following ratios and measures for Gladys Inc. for Year 2: A. Operating funds ratio B. Operating cash flow-to-current liabilities ratio C. Cash conversion ratio D. Earnings before interest, taxes, depreciation and amortization (EBITDA) E. Free cash flow F. Discretionary cash flow

What can you conclude about the cash flow health of Gladys Inc. from the ratios and measures?