The following information is available for Culver Corporatio

The following information is available for Culver Corporation 2017 2016 Current assets Total assets Current liabilities Total liabilities Net income Net cash provided by operating activities Preferred dividends Common dividends Expenditures on property, plant, and equipment 56,600 $38,600 242,600 207,600 24,600 32,600 74,600 102,600 82,600 42,600 92,600 58,600 8,600 4,100 29,600 14,600 8,600 5,600 Shares outstanding at beginning of year Shares outstanding at end of year 42,600 32,600 77,600 42,600 (a) Compute earnings per share for 2017 and 2016 for Culver. (Round Earnings per share to 2 decimal places, e.g. $2.78.) 2017 2016 Earnings per share $1.94 $1.00 (b) Compute the current ratio and debt to assets ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.) 2017 2016 Current ratio 2.28 1.18 Debt to assets ratio .31 49 (c) Compute free cash flow for each year. 2017 2016 Free cash flow Click if you would like to Show Work for this question

Solution

a. earning per share

2017 2016

$ $

Net Income 82,600 42,600

Preferred Dividend ( 8,600 ) (8,600)

(A)Earnings available for   74,000    34,000   

owners

(B)No,of outstanding shares 77,600 42,600

Earnings per share/(A/B) 0.95 0.80

b. Current Ratio = Current Asset/ Current liabilities

2017   2016

Current Asset Ratio =56,600/24,600 =38,600/32,600

=2.30 =1.18

Debt -equity ratio = Total Liabilities/Total owners shares

2017   2016

Debt equity ratio =74,600/77,600 = 102,600/42,600

= 0.96 = 2.41

c. Free cash flow= net income from (operating activites+ finance activites+investment activities)

2017   2016

Free cash flow =92,600+77,600-42,600 =58,600+42,600-32,600

=127,600 =68,600