Question 1

The following are financial statements of Ivanhoe Company.

Ivanhoe Company

Income Statement

For the Year Ended December 31, 2022Net sales

$2,221,500Cost of goods sold

1,020,000Selling and administrative expenses

903,500Interest expense

75,000Income tax expense

72,000Net income

$151,000

Ivanhoe Company

Balance Sheet

December 31, 2022Assets

Current assets

Cash

$60,300

Debt investments

83,000

Accounts receivable (net)

169,900

Inventory

266,500

Total current assets

579,700

Plant assets (net)

571,500

Total assets

$1,151,200

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$151,000

Income taxes payable

36,000

Total current liabilities

187,000

Bonds payable

215,920

Total liabilities

402,920

Stockholders' equity

Common stock

349,000

Retained earnings

399,280

Total stockholders' equity

748,280

Total liabilities and stockholders' equity

$1,151,200

Additional information: The net cash provided by operating activities for 2022 was $192,400. The cash used for capital expenditures was $86,500. The cash used for dividends was $31,700. The weighted-average common shares outstanding during the year was 50,000.

(a)Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(i)

Working capital. (2021: $160,500)(ii)

Current ratio. (2021: 1.65:1)(iii)

Free cash flow. (2021: $48,700)(iv)

Debt to assets ratio. (2021:31%)(v)

Earnings per share. (2021: $3.15)

Working Capital $ ?

Current Ratio ? :1

Free Cash Flow $ ?

Debt to assets ratio ? %

Earning Per Share$ ?