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Problem Ii

In: Business and Management

Submitted By Brully
Words 482
Pages 2
Problem Set II
Alex Pintos
July 8, 2015
Jeremy Stasch

Problem Set II
A.) Earnings per Share- Measures the net income on each share of common stock.
Year 2012
70000(Net Income)-20000(Preferred Stock Dividends)/33000(Average Common Shares Outstanding) = $1.515 per share.
Year 2011
60000(Net Income)-15000(Preferred Stock dividends)/30000(Average Common Shares Outstanding) = $1.50 per share.
B.) Working capital- The Difference between the current assets and liabilities.
Year 2012
188000(Current Assets)-75000(Current Liabilities) = $113000
Year 2011
155000(Current Assets)-70000(Current Liabilities) =$85000
C.) Current Ratio- The current assets are divided by current liabilities.
Year 2012
188000(Current Assets)/75000(Current Liabilities) = 2.50:1
Year 2011
155000(Current Assets/70000(Current Liabilities) = 2.21:1

D.) Debt to Total Assets Ratio- Source of information that measures the percentage of financing by creditors rather than stockholders.
Year 2012
155000(Total Liabilities)/760000(Total Assets) = 20.3%
Year 2011
160000(Total Liabilities)/685000(Total Assets) = 23.3%
E.) Free Cash Flow- Operating activities minus capital expenditures minis Cash dividends.
Year 2012
82000(Cash from Operating Activities)-45000(Capital Expenditures)-20000(Dividends) =$17000
Year 2011
56000(Cash from Operating Activities)-38000(Capital Expenditures)-15000(Dividends) =$3000
F.) There was marked improvement on Earnings per share in which the company has more value. There is more free cash flow from 2011 to 2012. Bottom for the most part there was gain.
A.) Earnings per Share- Measures the net income on each share of common stock. 218000(Net Income)-70000(Preferred Stock Dividends)/290000+300000/2=$0.50 per share. B.) Return on common Stockholders’ Equity. 218000(Net Income)-70000(Preferred Stock...

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