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Chapter 2 - Ratio Analysis 2014 $ 54,000 Current assets Total assets Current liabilities Total liabilities Net income Net cas
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Answer #1
1) Earning Per Shares = Net Income/ Average Number Of Shares Outstanding
2014 2013
= $80000/57500 = $40000/35000
= $ 1.39 = $ 1.14
2) Working Capital = Current Assets - Current Liabilities
2014 2013
$                                         32,000 $                                                         6,000
=$54000-22000 =$36000-30000
3) Current Ratio = Current Assets / Current Liabilities
2014 2013
= $54000/22000 = $36000/30000
=2.45 times =1.2 times
4) Debt To Asset Ratio = Total Debt / Total Assets
2014 2013
= $72000/240000 = $100000/205000
=30% =48.78%
5) Free Cash Flow = Net Cash From Operation - Expenditure on property plant & equipment
2014 2013
=$90000-27000 =$56000-12000
$                                         63,000 $                                                      44,000
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