Answer:
Please see below
Explanation:
a. Current ratio
= Total current asset / Total current liabilities
2017
Current asset. 890,400
Current liabilities 424,000
Current ratio = 890,400/424,000
= 2.1
2016 Current ratio
Current asset. 999,600
Current liabilities 357,000
Current ratio = 999,600/357,000
= 2.8
b. Earnings per share
= (Net income - Preference dividend) / Weighted average number of shares outstanding
2017
Net income. 166,830
Weighted Average number of shares outstanding 201,000
Earnings per share = $166,830/201,000
= $0.83
2016 Earnings per share
Net income $337,600
Weighted Average number of shares outstanding 211,000
Earnings per share = $337,600/211,000
= $1.6
c. Debt to asset ratio
= Total liabilities / Total assets
2017
Total liabilities 573,300
Total assets 1,950,000
= 573,300/1,950,000
= 0.29
2016 Debt to asset ratio
Total liabilities 552,132
Total assets 1,878,000
Debt to asset ratio = 552,132/1,878,000
= 0.29
d. Free cash flow
2017
Cash flow from operating activities 300,000
Less: capital expenditure (271,000)
Free cash flow 29,000
2016 free Cash flow from operating activities
Free cash flow 452,600
Less: capital expenditure (246,500)
Free cash flow. 206,100
