The following are of Ohara Company.
Additional information: The net cash provided by operating activities for 2022 was $190,800. The cash used for capital expenditures was $92,000. The cash used for dividends was $31,000. The weighted-average common shares outstanding during the year was 50,000.
Instructions
a. Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (i) Working capital. (2021: $160,500)
(ii) Current ratio. (2021: 1.65:1)
(iii) Free cash fl ow. (2021: $48,700)
(iv) Debt to assets ratio. (2021: 31%) (v) Earnings per share. (2021: $3.15)
b. Using your calculations from part (a), discuss changes from 2021 in liquidity, solvency, and profi tability.
