Question

Kimmel, Survey of Accounting, le Practice Assignment Gradebook ORION Downloadable eTextbook gnment CALCULATOR MESSAGE MY INST Do It Review 2-2 The following information is available for Novak Corp. Current assets Total assets Current liabilities Total liabilities 2017 $ 50,400 250,000 24,000 77,500 102,125 90,000 2016 $44,980 220,000 34,600 101,200 33,800 56,000 5,000 1,000 14,000 Net Income 5,000 Net cash provided by operating activities Preferred dividends Common dividends Expenditures on property, plant, and equipment 2,000 29,000 Shares outstanding at beginning of year Shares outstanding at end of year 35,000 70,000 25,000 35,000 (a) Compute earnings per share for 2017 and 2016 for Novak. (Round answers to 2 decimal places, .. 52.75 2017 2016 Earnings per share (b) Compute the current ratio and debt to assets ratio for each year. (Round answers to 2 decimal places, .. Privacy Policy 1 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. MacBook Air 20.

Answer 1

earnings per share	(net income - preferred dividend)/weighted average common shares
	2017 ($)	2016 ($)
net income	102125	33800
preferred dividend	5000	5000
shares outstanding at the beginning	35000	25000
shares outstanding at the end	70000	35000
weighted average common shares	52500	30000
earnings per share	1.85	0.96
current ratio	current assets / current liabilities
	2017 ($)	2016 ($)
current assets	50400	44980
current liabilities	24000	34600
current ratio	2.10	1.30
debt to assets ratio	total liabilities / total assets
	2017 ($)	2016 ($)
total liabilities	77500	101200
total assets	250000	220000
debt to assets ratio	0.31	0.46