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9 November, 03:08

Blossom Company reported the following selected information at March 31 Total current assets Total assets Total current liabilities Total liabilities Net cash provided by operating activities 2017 $252,500 431,500 284,500 374,000 62,100 Calculate the current ratio, the debt to assets ratio, and free cash flow for March 31, 2017. The company paid dividends of $11,000 and spent $24,500 on capital expenditures. (Round current ratio and debt to assets ratio to 2 decimal places, e. g. 15.25. If answer is negative enter it with a negative sign preceding the number e. g.-15,000 or in parentheses e. g. (15,000)) Current ratio Debt to assets Free cash flow

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  1. 9 November, 03:12
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    a. 0.89

    b. 86.67%

    c. $37,600

    Explanation:

    A. Current ratio = Current Assets / current liabilities

    = 252,500 / 284,500

    = 0.8875

    = 0.89

    B. Debt to assets ratio = Total liabilities / Total assets

    =$374,000 / $431,500

    =0.8667%

    = 86.67%

    C. Free cash flow = Net cash provided by operating activities - Capital expenditure

    = $62,100 - $24,500

    = $37,600
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