Problem 2-05A a

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The following are financial statements of Sunland Company.

Sunland Company Income Statement For the Year Ended December 31, 2022
Net sales		$2,238,000
Cost of goods sold		1,014,000
Selling and administrative expenses		908,000
Interest expense		80,000
Income tax expense		74,000
Net income		$ 162,000

Sunland Company Balance Sheet December 31, 2022
Assets
Current assets
Cash		$ 56,400
Debt investments		81,000
Accounts receivable (net)		169,400
Inventory		184,600
Total current assets		491,400
Plant assets (net)		575,000
Total assets		$ 1,066,400
Liabilities and Stockholders Equity
Current liabilities
Accounts payable		$ 159,000
Income taxes payable		30,000
Total current liabilities		189,000
Bonds payable		210,900
Total liabilities		399,900
Stockholders equity
Common stock		347,000
Retained earnings		319,500
Total stockholders equity		666,500
Total liabilities and stockholders equity		$1,066,400

Additional information: The net cash provided by operating activities for 2022 was $190,800. The cash used for capital expenditures was $85,500. The cash used for dividends was $32,800. The weighted-average common shares outstanding during the year was 50,000.

(a)

Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(i)		Working capital. (2021: $160,500)
(ii)		Current ratio. (2021: 1.65:1)
(iii)		Free cash flow. (2021: $48,700)
(iv)		Debt to assets ratio. (2021: 31%)
(v)		Earnings per share. (2021: $3.15)

(1) Working capital 292400 (ii) Current ratio 2,6/1 (iii) Free cash flow 105300 (iv) Debt to assets ratio (w) Earnings per share 2.58