Solution-Based on the ratios calculated discuss briefly the

Based on the ratios calculated discuss briefly the

Reference no: EM13574110

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.

(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: EM13574110

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Based on the ratios calculated discuss briefly the

Reference no: EM13574110

Reference no: EM13574110

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