Respuesta :
Answer:
Kindly check explanation
Explanation:
Given the following :
__________________2022______2021
Current asset______871,500___972,000
Total assets______1,908,500__ 1,786,000
Current liabilities___415,000____ 360,000
Total liabilities_____ 564,916____ 528,656
Net income________197,760____ 410,590
Net cash (from OP)__322,000____ 498,600
Capital expenditures_289,000___ 290,200
Dividends paid(CS)___82,000____ 126,700
Weighted-average common shares outstanding 206,000 216,100
*(OP) = Operating activities
*(CS) = common stock
Current ratio for each year:
2022:
Current asset / current liability
$871,500 / $415,000 = 2.1 : 1
2021:
$972,000 / $360,00 = 2.7 : 1
EARNING PER SHARE :
Net income / weighted average shares outstanding
2022:
$197,760 / 206,000 = $0.96
2021:
$410,590 / 216,100 = $1.90
DEBT TO ASSET RATIO:
Total liabilities / Total asset
2022:
$564,916 / $1,908,500 = 0.296
2021:
$528,656 / 1,786,000 = 0.296
FREE CASH FLOW :
Net cash (from OP) - Capital expenditure - Dividend paid on common stock
2022:
$322,000 - $289,000 - $82,000 = - $49,000
2021:
$498,600 - $290,200 - $126,700 = $81,700
Working Notes:
Enteries 2022 2021
- Current asset 871,500 972,000
- Total assets 1,908,500 1,786,000
- Current liabilities 415,000 360,000
- Total liabilities 564,916 528,656
- Net income 197,760 410,590
- Net cash (from OP 322,000 498,600
- Capital expenditures 289,000 290,200
- Dividends paid(CS) 82,000 126,700
Part A) :
The current ratio for each year :
2022:
Current Ratio = Current asset / current liability
Current Ratio = $871,500 / $415,000
Current Ratio = 2.1 : 1
2021:
Current Ratio = Current asset / current liability
Current Ratio = $972,000 / $360,00
Current Ratio = = 2.7 : 1
Part B :
The Earning per share for each year :
2022:
Earning per share= Net income / weighted average shares outstanding
Earning per share= $197,760 / 206,000
Earning per share== $0.96
2021:
Earning per share= Net income / weighted average shares outstanding
Earning per share=$410,590 / 216,100
Earning per share= $1.90
Part C:
Debt to asset ratio for each year :
2022:
Debt to asset ratio=Total liabilities / Total asset
Debt to asset ratio=$564,916 / $1,908,500
Debt to asset ratio = 0.296
2021:
Debt to asset ratio=Total liabilities / Total asset
Debt to asset ratio=$528,656 / 1,786,000
Debt to asset ratio= 0.296
Part D:
Free Cash flow for each year :
2022:
Free Cash flow=Net cash (from OP) - Capital expenditure - Dividend paid on common stock
Free Cash flow=$322,000 - $289,000 - $82,000
Free Cash flow = - $49,000
2021:
Free Cash flow=Net cash (from OP) - Capital expenditure - Dividend paid on common stock
Free Cash flow$498,600 - $290,200 - $126,700
Free Cash flow= $81,700
Learn more :
https://brainly.com/question/24129607?referrer=searchResults