Answer:
Please see the detailed explanation below.
Explanation:
The provided data is as follows:
__________________2022______2021
Current assets______871,500___972,000
Total assets______1,908,500__ 1,786,000
Current liabilities___415,000____ 360,000
Total liabilities_____ 564,916____ 528,656
Net income________197,760____ 410,590
Operating cash flow__322,000____ 498,600
Capital expenditures_289,000___ 290,200
Dividends paid (CS)___82,000____ 126,700
Weighted-average number of common shares outstanding: 206,000 216,100
*(OP) = Operating activities
*(CS) = Common stock
Current ratio for each fiscal year:
For 2022:
Current asset divided by current liability
$871,500 / $415,000 = 2.1: 1
For 2021:
$972,000 / $360,000 = 2.7: 1
EARNINGS PER SHARE:
Net income divided by the weighted average shares outstanding
For 2022:
$197,760 / 206,000 = $0.96
For 2021:
$410,590 / 216,100 = $1.90
DEBT TO ASSET RATIO:
Total liabilities divided by total assets
For 2022:
$564,916 / $1,908,500 = 0.296
For 2021:
$528,656 / 1,786,000 = 0.296
FREE CASH FLOW:
Net cash (from OP) minus capital expenditures minus dividends paid on common stock
For 2022:
$322,000 - $289,000 - $82,000 = - $49,000
For 2021:
$498,600 - $290,200 - $126,700 = $81,700
