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snow_lady [41]
3 years ago
8

Blossom Company reported the following selected information at March 31 Total current assets Total assets Total current liabilit

ies Total liabilities Net cash provided by operating activities 2017 $252,500 431,500 284,500 374,000 62,100 Calculate the current ratio, the debt to assets ratio, and free cash flow for March 31, 2017. The company paid dividends of $11,000 and spent $24,500 on capital expenditures. (Round current ratio and debt to assets ratio to 2 decimal places, e.g. 15.25. If answer is negative enter it with a negative sign preceding the number e.g.-15,000 or in parentheses e.g. (15,000)) Current ratio Debt to assets Free cash flow
Business
1 answer:
Bas_tet [7]3 years ago
8 0

Answer:

a. 0.89

b. 86.67%

c. $37,600

Explanation:

A. Current ratio = Current Assets / current liabilities

= 252,500 / 284,500

= 0.8875

= 0.89

B. Debt to assets ratio = Total liabilities / Total assets

=$374,000 / $431,500

=0.8667%

= 86.67%

C. Free cash flow = Net cash provided by operating activities - Capital expenditure

= $62,100 - $24,500

= $37,600

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