Based on the ratios calculated discuss briefly the

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Reference no: EM13480814

Condensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page.

SIEVERT CORPORATION
Balance Sheets
December 31

Assets

2012

2011

Cash

$28000

$20000

Receivables (net)

70000

62000

Other current assets

90000

73000

Long-term investments

62000

60000

Plant and equipment (net)

510000

470000

Total assets

$760000

$685000

Liabilities and Stockholders" Equity



Current liabilities

75000

70000

Long-term debt

80000

90000

Common stock

330000

300000

Retained earnings

275000

225000

Total liabilities and stockholders" equity

760000

685000

SIEVERT CORPORATION
Income Statements
For the Years Ended December 31


2012

2011

Sales

$750000

$680000

Cost of goods sold

440000

400000

Operating expenses (including income taxes)

240000

220000

Net income

$70000

$60000

Additional information:



Cash from operating activities

$82000

$56000

Cash used for capital expenditures

$45000

$38000

Dividends paid

$20000

$15000

Average number of shares outstanding

33000

30000

Instructions

Compute these 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 financial position and operating results from 2011 to 2012 of Sievert Corporation.

Reference no: EM13480814

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