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Accounting

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

Average common shares 10,000 Current liabilities $100,000
Capital expenditures $20,000 Net income $ 21,000
Cash provided by operations $28,000 Net sales $150,000
Dividends paid $5,000 Total liabilities $105,000
Current assets $150,000 Total assets $175,000

Instructions: Compute the following:

(a) Current ratio.

(b) Working capital.

(d) Debt to total assets ratio.

(e) Free Cash Flow

To earn full credit, you must state the formula you are using, show your computations and describe your findings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M991612

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