The following information is available for IBM Inc. 2017 2016 Current assets $ 88,000 60,800 Total assets 400,000 341,000 Current liabilities 40,000 38,000 Total liabilities 120,000 150,000 Net income 100,000 50,000 Net cash provided by operating activities 110,000 70,000 Preferred dividends 10,000 10,000 5,000 Common dividends 2,500 Expenditures on PP& 45,000 20,000 Shares outstanding at beginning of year 60,000 40,000 Shares outstanding at end of year 120,000 60,000 Q4. Compute the current ratio and debt to assets ratio for 2017. Compute free cash flow for each year. Which of the following statement is correct? A. Current ratio for 2017 is 1.6. B. Debt to assets ratio for 2017 is 0.3 C. Free cash flow for year 2016 is 50,000. D. Free cash flow for year 2017 is 37,500. Q5. Which of the following statement is correct? A. The higher the company's EPS, the lower profitability of a company. B. The higher the company's current ratio, the higher the company's ability to pay its short term obligations and the lower the company's liquidity. C. The higher the company's working capital value, the higher the company's ability to pay its obligation. Q5. Which of the following statement is correct? A. The higher the company's EPS, the lower profitability of a company. B. The higher the company's current ratio, the higher the company's ability to pay its short term obligations and the lower the company's liquidity. C. The higher the company's working capital value, the higher the company's ability to pay its obligation. D. An increasing debt to assets ratio over time indicates that a company is financing its operation increasingly through stock equity and that it has a relatively lower fixed interest rate charges burden on its assets. Investors typically prefer companies with high debt to assets ratio ratios