Use the following partial financial statement information below to calculate the liquidity and profitability ratios. This information can be used to correctly solve each of the ratios below.
Average common shares outstanding 15,000 Current liabilities $25,000
Capital expenditures $10,000 Net income $30,000
Cash provided by operations $56,000 Net sales $90,000
Common stock dividends paid $30,000 Total liabilities $50,000
Current assets $35,000 Total assets $62,500
Instructions: Compute the following.
a) Current ratio
b) Working capital
c) Earnings per share
d) Debt-to-total-assets ratio
e) Free cash flow
To earn full credit, you must show the formula you are using, show your computations, and explain the meaning of each of your ratio results
(TCOs B, E) The following items are taken from the financial statements of Lansing Company for 2010.
Accounts payable $16,500
Accounts receivable 25,500
Accumulated depreciation 12,600
Bonds payable 35,000
Cash 55,000
Common stock 75,000
Cost of goods sold 53,000
Depreciation expense 6,300
Dividends 5,300
Equipment 35,000
Interest expense 4,300
Patents 6,500
Retained earnings, January 1 80,000
Salaries expense 42,000
Sales revenue 115,000
Supplies 3,500