Based on the ratios calculated discuss briefly the

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Reference no: EM13480822

Condensed balance sheet and income statement data for Fellenz Corporation are presented below.

FELLENZ CORPORATION
Balance Sheets
December 31

Assets

2012

2011

Cash

$ 40,000

$ 24,000

Receivables (net)

90,000

55,000

Other current assets

74,000

73,000

Long-term investments

78,000

60,000

Plant and equipment (net)

520,000

407,000

Total assets

$802,000

$619,000

Liabilities and Stockholders" Equity

2012

2011

Current liabilities

$ 88,000

$ 65,000

Long-term debt

90,000

70,000

Common stock

370,000

320,000

Retained earnings

254,000

164,000

Total liabilities and stockholders" equity

$802,000

$619,000

FELLENZ CORPORATION
Income Statements
For the Years Ended December 31


2012

2011

Sales

$770,000

$800,000

Cost of goods sold

420,000

400,000

Operating expenses (including income taxes)

200,000

237,000

Net income

$150,000

$163,000

Cash from operating activities

$165,000

$178,000

Cash used for capital expenditures

85,000

45,000

Dividends paid

50,000

43,000

Average number of shares outstanding

370,000

320,000

Instructions

Compute the following values and ratios for 2011 and 2012.

(a) Earnings per share.

(b) Working capital.

(c) Current ratio.

(d) Debt to total assets ratio.

(e) Free cash flow.

(f ) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results of Fellenz from 2011 to 2012.

Reference no: EM13480822

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