Gladys Inc. reported current assets totaling $65,800 and current liabilities totaling $28,750 at December 31, Year 2 The companys 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 Expense	$60,500
Interest Expense	$6,300
Income Taxes Expense	$10,700
Net Income	$84,300

Statement of Cash Flow for Year 2

Operating Activites
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 Activites

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:

1. Operating funds ratio
2. Operating cash flow-to-current liabilities ratio
3. Cash conversion ratio
4. Earnings before interest, taxes, depreciation and amortization (EBITDA)
5. Free cash flow
6. Discretionary cash flow

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