Question: Problem 8 (10 Points) Use the following data to calculate the liquidity and profitability ratios listed below. Average common shares outstanding 10,000 Current liabilities $100,000

Problem 8 (10 Points)

Use the following data to calculate the liquidity and profitability ratios listed below.

Average common shares outstanding 10,000 Current liabilities $100,000

Capital expenditures $20,000 Net income 20,000

Cash provided by operating activities 32,000 Net sales 150,000

Dividends paid 5,000 Total liabilities 125,000

Current assets 200,000 Total assets 220,000

Instructions

Compute the following:

(a) Current ratio. (d) Debt to assets ratio.

  1. Working capital. (e) Free cash flow.

(c) Earnings per share.

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