Use the following data to calculate the liquidity and profitability ratios listed below.
Average common shares 10,000 Current liabilities $100,000
Capital expenditures $20,000 Net income $ 21,000
Cash provided by operations $28,000 Net sales $150,000
Dividends paid $5,000 Total liabilities $105,000
Current assets $150,000 Total assets $175,000
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 state the formula you are using, show your computations and explain your findings.