The following information is available for Nguoi Corporation. 

a. Compute earnings per share for 2022 and 2021 for Nguoi, and comment on the change. Nguoi’s primary competitor, Matisse Corporation, had earnings per share of $1 per share in 2022. Comment on the diff erence in the ratios of the two companies. 

b. Compute the current ratio and debt to assets ratio for each year, and comment on the changes. 

c. Compute free cash fl ow for each year, and comment on the changes.

Transcribed Image Text:

2021 2022 $ 54,000 $ 36,000 Current assets Total assets 240,000 205,000 Current liabilities 22,000 30,000 Total liabilities 72,000 100,000 Net income 80,000 40,000 Net cash provided by operating activities 90,000 56,000 Preferred dividends 6,000 6,000 Common dividends 3,000 1,500 $ 27,000 $ 12,000 Expenditures on property, plant, and equipment Common shares outstanding at beginning of year Common shares outstanding at end of year 40,000 30,000 75,000 40,000