The following information (in ’000s) has been obtained from Patinka Limited’s financial statements for the fiscal years ended December 31.

There were no preferred shares issued by Patinka nor were there any dividends paid in any of the three years.

Instructions

a. Calculate the following items for Patinka. Round the first three ratios to two decimal places and the last three ratios to one decimal place.1. Current cash debt coverage ratio for fiscal years 2022 and 2023

2. Cash debt coverage ratio for fiscal years 2022 and 2023

3. Earnings per share for fiscal years 2022 and 2023

4. Price earnings ratio for fiscal years 2022 and 2023

5. Times interest earned ratio for fiscal years 2022 and 2023

6. Free cash flow to operating cash flows for fiscal years 2022 and 2023

b. Comment on whether there has been improvement or deterioration from 2022 to 2023 in the six ratios calculated. Take the perspective of Patinka’s management.

c. Would your answer to part (b) change if you were looking at the results from the perspective of an investor?

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Total assets Current liabilities Total liabilities Total shareholders' equity Income before taxes Interest expense Net cash provided by operating activities Net income Capital expenditures for the year Number of common shares outstanding Taken from stock market at Dec. 31 Market price per share (not in '000s) 2023 $735 85 240 495 90 10 119 72 30 70 $16.50 2022 $590 80 165 425 62 6 102 50 20 70 $12.41 2021 $514 82 170 399 57 5 96 46 15 70 $11.80