Question

Problem 2-6A Condensed balance sheet and income statement data for Sheffield Corp. are presented as follows Sheffield Corp Balance Sheets December 31 Assets Cash Receivables (net) Other current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities and Stockholder Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity 2017 2016 83,300 103,300 62,000 523,300 $803,040 $31,140 23,140 75,300 86,300 60,000 483,300 728,040 s' Equity $78,140 73,140 103,300 313,300 238,300 $803,040 $728,040 93,300 343,300 288,300

Anyone know these values and can explain how to get them?

Answer 1

Please provide rating... Let me know if you need any clarification

a) Earning per share
		=Net income/weighted average number of share outstanding
			2016		2017
	Net income		87000		98000
	Weighted average number of share outstanding		30000		33000
	Earning per share		2.90		2.97
b) Working cpital
		=Current asset - Current liabilities
			2016		2017
	Cash		23140		31140
	Receivable		75300		83300
	Other current asset		86300		103300
	Total current asset		184740		217740
	Total current liabilities		73140		78140
	Working capital = Current asset - Current liabilities		111600		139600
c) Current ratio
		=Current asset / Current liabilities
			2016		2017
	Total current asset		184740		217740
	Total current liabilities		73140		78140
	Current ratio = Current asset / Current liabilities		2.5		2.8
	Answer =		2.5:1		2.8:1
d) Debt to asset ratio
		=Total liabilities / Total asset
			2016		2017
	Total liabilities		176440	=73140+103300	171440	=78140+93300
	Total asset		728040		803040
	Debt to asset ratio =		24.2%		21.3%
e) Free cash flow
	=Cash flow from operating activities - Capital expenditure - Dividend paid
			2016		2017
	Cash flow from operating activities		59140		115340
	Less : Capital expenditure		-38000		-48140
	less : Dividend paid		-18140		-48000
	Free cash flow		3000		19200