Gladys Inc. reported current assets totaling $65,800 and current liabilities totaling $28,750 at December 31, Year...

 

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Gladys Inc. reported current assets totaling $65,800 and current liabilities totaling $28,750 at December 31, Year 2The company's income statement and statement of cash flow for Year 2 appear below: Income Statement for Year 2 Sales $283,200 Cost of goods sold Depreciation expense Other operating expenses Interest expense Income taxes expense 105,000 16,400 60,500 6,300 10,700 $ 84.300 Net income Statement of Cash Flow for Year 2 Operating activities Net income $ 84,300 Depreciation expense 16,400 Accounts receivable (4,750) Inventory Accounts payable Income taxes payable Cash flow from operations 150 (3,050) 1.350 $94,400 Investing activities Marketable securities Equipment Cash flow for investing $ 1,000 (49,800) (48,800) Financing activities Common stock issued 9,500 9,950 (8,750) (15.500) (4.800) 40,800 25,150 $65.950 Note payable borrowings Note payable payments Dividends paid Cash flow for financing Net increase in cash Cash, beginning of year Cash, end of year Calculate the following ratios and measures for Gladys Inc. for Year 2: A. Operating funds ratio B. Operating cash flow-to-current liabilities ratio C. Cash conversion ratio D. Earnings before interest, taxes, depreciation and amortization (EBITDA) E. Free cash flow F. Discretionary cash flow What can you conclude about the cash flow health of Gladys Inc. from the ratios and measures? Gladys Inc. reported current assets totaling $65,800 and current liabilities totaling $28,750 at December 31, Year 2The company's income statement and statement of cash flow for Year 2 appear below: Income Statement for Year 2 Sales $283,200 Cost of goods sold Depreciation expense Other operating expenses Interest expense Income taxes expense 105,000 16,400 60,500 6,300 10,700 $ 84.300 Net income Statement of Cash Flow for Year 2 Operating activities Net income $ 84,300 Depreciation expense 16,400 Accounts receivable (4,750) Inventory Accounts payable Income taxes payable Cash flow from operations 150 (3,050) 1.350 $94,400 Investing activities Marketable securities Equipment Cash flow for investing $ 1,000 (49,800) (48,800) Financing activities Common stock issued 9,500 9,950 (8,750) (15.500) (4.800) 40,800 25,150 $65.950 Note payable borrowings Note payable payments Dividends paid Cash flow for financing Net increase in cash Cash, beginning of year Cash, end of year Calculate the following ratios and measures for Gladys Inc. for Year 2: A. Operating funds ratio B. Operating cash flow-to-current liabilities ratio C. Cash conversion ratio D. Earnings before interest, taxes, depreciation and amortization (EBITDA) E. Free cash flow F. Discretionary cash flow What can you conclude about the cash flow health of Gladys Inc. from the ratios and measures?

Answer rating: 100% (QA)

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