Use the Following Data to Calculate the Liquidity and Profitability

Essay

Use the following data to calculate the liquidity and profitability ratios listed below. $$\begin{array} { l r l r } \text { Average common shares outstanding } & 10,000 & \text { Current liabilities } & \$ 100,000 \\\text { Capital expenditures } & \$ 20,000 & \text { Net income } & 21,000 \\\text { Cash provided by operating activities } & 32,000 & \text { Net sales } & 150,000 \\\text { Dividends paid } & 5,000 & \text { Total liabilities } & 126,000 \\\text { Current assets } & 190,000 & \text { Total assets } & 210,000\end{array}$$ Instructions
Compute the following:
(a) Current ratio. (d) Debt to assets ratio.
(b) Working capital. (e) Free cash flow.
(c) Earnings per share.