The following data was obtained from the year-end financial statements of The Monrovia Company:

Required

a. Compute the following cash flow ratios for The Monrovia Company: (1) Operating funds ratio, (2) Operating cash flow to current liabilities ratio, and (3) Cash conversion ratio.

b. Compute the following alternative measures of cash flow for The Monrovia Company; (1) Free cash flow, and (2) Discretionary cash flow.

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Cash flow from operations. Net sales... Net income. Current liabilities. Total liabilities. Total assets.. Cash from sales. Capital expenditures Dividend payments.. Debt payments.... $ 46,500 480,000 32,500 110,500 195,500 307,000 432,000 31,000 2,000 2,000