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 - Problems - Set A - Page 84: P2-6A

Answer

Tutorial Note; Make sure to include current as well as long term debt while calculating Debt To Total Assets Ratio. Below is the summary of answer;

Work Step by Step

(N-1) Earnings Per Share = Net income after tax / Average # of shares outstanding (N-2) Working Capital = Current Assets less Current Liabilities (N-3) Current Ratio = Current Assets / Current Liabilities (N-4) Debt To Total Assets = Total Debt / Total Assets (N-5) Free Cash Flows = Net Cash generated from operations - Capital Expenditures - Dividends Paid
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