Question
Problem 8 (10 Points) Use the following data to calculate the liquidity and profitability ratios listed below. Average common shares outstanding 10,000 Current liabilities $100,000
Problem 8 (10 Points)
Use the following data to calculate the liquidity and profitability ratios listed below.
Average common shares outstanding 10,000 Current liabilities $100,000
Capital expenditures $20,000 Net income 20,000
Cash provided by operating activities 32,000 Net sales 150,000
Dividends paid 5,000 Total liabilities 125,000
Current assets 200,000 Total assets 220,000
Instructions
Compute the following:
(a) Current ratio. (d) Debt to assets ratio.
- Working capital. (e) Free cash flow.
(c) Earnings per share.
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Core Concepts of Accounting Information Systems
Authors: Mark G. Simkin, Jacob M. Rose, Carolyn S. Norman
12th edition
1118022300, 978-1118022306
