Use the following data to calculate the liquidity and profitability ratios listed below.

Average common shares outstanding20,000Current liabilities$120,000

Capital expenditures$20,000Net income40,000

Cash provided by operating activities42,000Net sales160,000

Dividends paid to common stockholders7,000Total liabilities145,000

Current assets220,000Total assets380,000

Instructions

Compute the following:

(a)Current ratio.(d)Debt to assets ratio.

(b)Working capital.(e)Free cash flow.

(c)Earnings per share.