Question 1

The following are financial statements of Sunland Company.

Sunland Company Income Statement For the Year Ended December 31, 2022
Net sales		$2,229,500
Cost of goods sold		1,017,500
Selling and administrative expenses		902,500
Interest expense		81,000
Income tax expense		73,500
Net income		$ 155,000

Sunland Company Balance Sheet December 31, 2022
Assets
Current assets
Cash		$ 61,800
Debt investments		87,000
Accounts receivable (net)		169,800
Inventory		155,150
Total current assets		473,750
Plant assets (net)		570,000
Total assets		$ 1,043,750
Liabilities and Stockholders Equity
Current liabilities
Accounts payable		$ 153,500
Income taxes payable		36,000
Total current liabilities		189,500
Bonds payable		186,250
Total liabilities		375,750
Stockholders equity
Common stock		351,000
Retained earnings		317,000
Total stockholders equity		668,000
Total liabilities and stockholders equity		$1,043,750

Additional information: The net cash provided by operating activities for 2022 was $191,400. The cash used for capital expenditures was $85,500. 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)

(i)		Working capital		$enter a dollar amount
(ii)		Current ratio		enter amount rounded to 2 decimal places	:1
(iii)		Free cash flow		$enter a dollar amount
(iv)		Debt to assets ratio		enter percentages rounded to 1 decimal place	%
(v)		Earnings per share		$enter a dollar amount rounded to 2 decimal places