The financial statements of DeVoe Company are presented here. Instructions(a) Compute the following values and ratios for

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The financial statements of DeVoe Company are presented here.

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Instructions(a) Compute the following values and ratios for 2012. (We provide the results from 2011 for comparative purposes.)(i) Current ratio. (2011: 2.4:1)(ii) Working capital. (2011: $178,000)(iii) Debt to total assets ratio. (2011: 31%)(iv) Free cash flow. (2011: $13,000)(v) Earnings per share. (2011: $1.35)(b) Using your calculations from part (a), discuss changes from 2011 in liquidity, solvency, andprofitability.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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