math
Comparative financial statement data for Blue Spruce Corp. and Flounder Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017.
Blue Spruce Corp.
Flounder Corp.
2017 2017
Net sales $2,268,000 $781,200
Cost of goods sold 1,480,500 428,400
Operating expenses 356,580 123,480
Interest expense 11,340 4,788
Income tax expense 107,100 45,360
Current assets 476,100 200,236
Plant assets (net) 670,320 176,057
Current liabilities 83,570 42,482
Long-term liabilities 136,710 51,262
Net cash provided by operating activities
173,880 45,360
Capital expenditures 113,400 25,200
Dividends paid on common stock 45,360 18,900
Weighted-average number of shares outstanding 80,000 50,000
(a)
Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.)
Net Income Earnings per share
Blue Spruce Corp. $
$
Flounder Corp. $
$
(b)
Compute working capital and the current ratios for each company for 2017. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.)
Working Capital Current Ratios
Blue Spruce Corp. $
:1
Flounder Corp. $
:1
(c)
Compute the debt to assets ratio and the free cash flow for each company for 2017. (Round debt to assets to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Debt to Assets Free Cash Flow
Blue Spruce Corp.
% $
Flounder Corp.
% $
