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.

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