Page of 10 Gladys Inc. reported current assets totaling S65,800 and current liabilities totaling $28,750 at December 31, Year 2 The 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 Equipment Cash flow for investing $ 1.000 (49.800) (48,800) Financing activities Common stock issued Note payable borrowings Note payable payments Dividends paid Cash flow for financing Net increase in cash Cash, beginning of year Cash, end of year 9,500 9,950 (8,750) 15.500) 14.800) 40,800 25,150 $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 4 presc ho 96 & Page of 10 Depreciation expense Accounts receivable Inventory Accounts payable Income taxes payable Cash flow from operations 16.400 (4.750) 150 (3,050) 1,350 $94.400 Investing activities Marketable securities Equipment Cash flow for investing $ 1,000 (49.800) (48,800) Financing activities Common stock issued Note payable borrowings Note payable payments Dividends paid Cash flow for financing Net increase in cash Cash, beginning of year Cash, end of year 9.500 9,950 (8,750) (15,500) (4.800) 40.800 25,150 $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? 3 fa - in pet se delete home $ % 5 ( + 6 & 7 8 ) O 9 backspace nu