11 Your answer is incorrect Try again Tamarisk Inc reported

11 Your answer is incorrect. Try again. Tamarisk, Inc. reported the following selected information at Ma Total current assets Total assets Total current liabilities Total liabilities Net cash provided by operating activities 2017 $235,000 435,000 288,00o 375,000 62,400 Calculate the current ratio, the debt to assets ratio, and free cash f $10,900 and spent $23,900 on capital expenditures. (Round curre e.g. 15.25. If answer is negative enter it with a negative sign parentheses e.g.(15,000) ] Current ratio Debt to assets Free cash flow 86.21 % 36.500 LINK TO TEXT INTERACTIVE TUTOR Pnvaurolicy I 2000-20ialohr Viley as na ina All Rights Reserved. A Division om/edugen/shared/a t/test/aglist. uni ?id-asnmt2 1 50480 #N 100 1A SMSUNG 480

Solution

Computation of Current Ratio

Current Ratio = Current Assets/Current Liabilities

Current Ratio = 235000/288000

Current Ratio = 0.82

Computation of Debt to Assets Ratio

Debt to Assets Ratio = Total Liabilities/Total Assets

Debt to Assets Ratio = 375000/435000

Debt to Assets Ratio = 86.21%

Computation of Free Cash Flows

Net Cash provided by operating activities

62400

Less: Dividends

10900

Less: Capital Expenditures

25900

Free Cash Flows

25600

Computation of Current Ratio

Current Ratio = Current Assets/Current Liabilities

Current Ratio = 235000/288000

Current Ratio = 0.82