Compute earnings per share for 2012 and 2011 for gerard and

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The following information is available for Gerard Corporation.


2012

2011

Current assets

$54,000

36,000

Total assets

240,000

205,000

Current liabilities

22,000

30,000

Total liabilities

72,000

100,000

Net income

80,000

40,000

Cash provided by operating activities

90,000

56,000

Preferred stock dividends

6,000

6,000

Common stock dividends

3,000

1,500

Expenditures on property, plant, and equipment

27,000

12,000

Shares outstanding at beginning of year

40,000

30,000

Shares outstanding at end of year

75,000

40,000

(a) Compute earnings per share for 2012 and 2011 for Gerard, and comment on the change. Gerard"s primary competitor, Thorpe Corporation, had earnings per share of $1 per share in 2012. Comment on the difference in the ratios of the two companies.

(b) Compute the current ratio and debt to total assets ratio for each year, and comment on the changes.

(c) Compute free cash flow for each year, and comment on the changes.

Reference no: EM13572384

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