Use the following data to calculate the liquidity and profitability ratios listed below. Average common shares outstanding 10,000 Current liabilities $100,000 Capital expenditures $20,000 Net income 21,000 Cash provided by operating activities 32,000 Net sales 150,000 Dividends paid 5,000 Total liabilities 126,000 Current assets 190,000 Total assets 210,000 Instructions Compute the following: (a) Current ratio. (d) Debt to assets ratio. (b) Working capital. (e) Free cash flow. (c) Earnings per share.
Use the following data to calculate the liquidity and profitability ratios listed below. Average common shares outstanding 10,000 Current liabilities $100,000 Capital expenditures $20,000 Net income 21,000 Cash provided by operating activities 32,000 Net sales 150,000 Dividends paid 5,000 Total liabilities 126,000 Current assets 190,000 Total assets 210,000 Instructions Compute the following: (a) Current ratio. (d) Debt to assets ratio. (b) Working capital. (e) Free cash flow. (c) Earnings per share.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 3CE: Compute the following profitability measures for Esplanade Enterprises for 20-2: (a) Profit margin...
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![Use the following data to calculate the liquidity and profitability ratios listed below.
Average common shares outstanding
10,000
Current liabilities
$100,000
Capital expenditures
$20,000
Net income
21,000
Cash provided by operating activities
32,000
Net sales
150,000
Dividends paid
5,000
Total liabilities
126,000
Current assets
190,000
Total assets
210,000
Instructions
Compute the following:
(a) Current ratio.
(d) Debt to assets ratio.
(b) Working capital.
(e) Free cash flow.
(c) Earnings per share.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fefcdbdd7-4333-4f80-87b6-9a528913cc52%2Fad70a2ff-56d9-4e39-8814-b8bd93b3361a%2F9wpr8u.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following data to calculate the liquidity and profitability ratios listed below.
Average common shares outstanding
10,000
Current liabilities
$100,000
Capital expenditures
$20,000
Net income
21,000
Cash provided by operating activities
32,000
Net sales
150,000
Dividends paid
5,000
Total liabilities
126,000
Current assets
190,000
Total assets
210,000
Instructions
Compute the following:
(a) Current ratio.
(d) Debt to assets ratio.
(b) Working capital.
(e) Free cash flow.
(c) Earnings per share.
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