Week: 4 Individual Paper - P2-6B and P13-2B ACC / 300

Week:4 Individual Paper - P2-6B and P13-2B

Week 4 (Problem P2-6B)
(A.)Earnings per share

2012 2011
$150,000 $163,000
370,000 shares 320,000 shares
=0.405 =0.509375
=$.41 =$.51 (B.)Working capital 2012 2011
$40,000 $24,000
$90,000 $55,000
$74,000 $73,000
$168,000 $152,000 - $88,000 - $65,000
= $116,000 = $87,000

(C.)Current Ratio

2012 2011
$204,000 $152,000
$88,000 $65,000
= 2.318181818181818181818181818181 =2.3384515384615384612384615384615
=2.32:1 2.34:1

D.)Debt to Total Debt Ratio
2012 2011
$178,000 $135,000
$802.000 $619.000
=221.945153715710723192019950124688 =218.093699515347334410339256868691
=22.90% =21.80%

(E.)Free Cash Flow 2012 2011
Cash provided from Operating Activities $165,000 $178,000
(Less)Capital Expenditures -$85,000 -$45,000
Dividends -$ 50,000 -$48,000
Free Cash Flow $30,000 $90,000
(F.)
I feel that the company’s success has diminished within the last year. There free cash flow has gone down from 2011 to 2012. The company’s earnings per share, has also showed a reduction from 51% in 2011, to 41% in 2012. The boost in the working capital to me, demonstrates that there are less available liquid assets to for the company. Lastly, the corporation seems to be continuing to increase their debt to assets, which looks like it might potentially be affecting their ability to meet current and future obligations that they have already have been committed to.

Week 4 (Problem P13-2B)
(A.)Earning per Share

$115, 000 $115,000 (13,000 + 15,000) = $14,000 2 =8.2142855714 =$8.2