Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Brief Exercises - Page 75: BE2-6

Answer

Current ratio= 0.892:1 Debt to Assets ratio= 0.855:1 Free cash flow= $0.25513

Work Step by Step

Cuuret ratio= C.A\C.L =262787\293625 =0.895:1 Debt to assets ratio= total debt\toal assets =376002\439832 = 0.855:1 Free cash flow= non cash-increase in working capital-capital expenditure =62300-12000-24787 =$25513
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