Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign e.g.-15,000 or In parenthesis e.g. (15,000).) Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 :1 % 2022 :1 %
Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign e.g.-15,000 or In parenthesis e.g. (15,000).) Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 :1 % 2022 :1 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and
equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000.
(a)
Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for
December 31, 2023. (Round answers to 2 decimal places, e.g. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or
in parenthesis e.g. (15,000).)
Current ratio
Debt to total assets ratio
Free cash flow, December 31, 2023 $
2023
:1
%
2022
:1
%
Transcribed Image Text:The comparative statement of financial position of Culver Corporation as at December 31, 2023, follows:
CULVER CORPORATION
Statement of Financial Position
December 31
Assets
Cash
Accounts receivable
Equipment
Less: Accumulated depreciation
Total
Liabilities and Shareholders' Equity
Accounts payable
Common shares
Retained earnings
Total
December 31
2023
$54,500
89.100
27,800
(11,400)
$160,000
$20,000
100,000
40,000
$160,000
2022
$6,500
88,200
22,300
(10,800)
$106,200
$10,000
76,000
20,200
$106,200
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