E PreClass Chpt 22 Acc LWileyPLUS y Akron Expenence C Secure

·(E) Pre-Class Chpt 2-2. Acc ·L]WileyPLUS y Akron Expenence- C Secure https://edugen.wileyplus.com/edugen/lti/main.uni Kimmel, Financial Accounting, Be, Custom for University of Akron Help I Svstem Announcements NMENT RESOURCES lass Chpt 2-2A ief Exercise 2-5 ief Exercise 2-7 Brief Exercise 2-5 Blossom Company reported the following selected information at March 31 Total current assets Total assets Total current liabilities Total liabilities Net cash provided by operating activities62,100 2017 $252,500 431,500 284,500 374,000 ew Score ctive 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 flows LINK TO TEXT INTERACTIVE TUTORIAL Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Solution

Answer

1.

Current Ratio = Current Assets / Current Liabilities

= 252,500 / 284,500

Current Ratio = 0.888:1

2.

Debt to assets ratio = Total Debt / Total Assets

= 374,000 / 431,500

Debt to assets ratio = 0.868

3.

Free Cash Flow = Cash flow from Operating activities – Capital Expenditures

= 62,100 – 24,500

Free Cash Flow = $37,600