Condensed balance sheet and income statement data for Fellenz Corporation are presented below.
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FELLENZ CORPORATION
Balance Sheets
December 31
|
|
Assets
|
2012
|
2011
|
|
Cash
|
$ 40,000
|
$ 24,000
|
|
Receivables (net)
|
90,000
|
55,000
|
|
Other current assets
|
74,000
|
73,000
|
|
Long-term investments
|
78,000
|
60,000
|
|
Plant and equipment (net)
|
520,000
|
407,000
|
|
Total assets
|
$802,000
|
$619,000
|
|
Liabilities and Stockholders" Equity
|
2012
|
2011
|
|
Current liabilities
|
$ 88,000
|
$ 65,000
|
|
Long-term debt
|
90,000
|
70,000
|
|
Common stock
|
370,000
|
320,000
|
|
Retained earnings
|
254,000
|
164,000
|
|
Total liabilities and stockholders" equity
|
$802,000
|
$619,000
|
|
FELLENZ CORPORATION
Income Statements
For the Years Ended December 31
|
|
2012
|
2011
|
|
Sales
|
$770,000
|
$800,000
|
|
Cost of goods sold
|
420,000
|
400,000
|
|
Operating expenses (including income taxes)
|
200,000
|
237,000
|
|
Net income
|
$150,000
|
$163,000
|
|
Cash from operating activities
|
$165,000
|
$178,000
|
|
Cash used for capital expenditures
|
85,000
|
45,000
|
|
Dividends paid
|
50,000
|
43,000
|
|
Average number of shares outstanding
|
370,000
|
320,000
|
Instructions
Compute the following values and ratios for 2011 and 2012.
(a) Earnings per share.
(b) Working capital.
(c) Current ratio.
(d) Debt to total assets ratio.
(e) Free cash flow.
(f ) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results of Fellenz from 2011 to 2012.