sievert corporation financial ratio analysis 501123

P2-6A
Condensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page.

SIEVERT CORPORATIONBalance SheetsDecember 31
Assets
(2012 year)
2011

Cash
$ 28,000 (2012 year)
$ 20,000 (2011 year)

Receivables (net)
70,000 (2012 year)
62,000 (2011 year)

Other current assets
90,000 (2012 year)
73,000 (2011 year)

Long-term investments
62,000 (2012 year)
60,000 (2011 year)

Plant and equipment (net)
510,000 (2012 year)
470,000 (2011 year)

Total assets
$760,000 (2012 year)
$685,000 (2011 year)

Liabilities and Stockholders Equity

Current liabilities
$ 75,000 (2012 year)
$ 70,000 (2011 year)

Long-term debt
80,000 (2012 year)
90,000 (2011 year)

Common stock
330,000 (2012 year)
300,000 (2011 year)

Retained earnings
275,000 (2012 year)
225,000 (2011 year)

Total liabilities and stockholders equity
$760,000 (2012 year)
$685,000 (2011 year)

SIEVERT CORPORATIONIncome StatementsFor the Years Ended December 31
2012
2011

Sales
$750,000 (2012 year)
$680,000 (2011 year)

Cost of goods sold
440,000 (2012 year)
400,000 (2011 year)

Operating expenses (including income taxes)
240,000 (2012 year)
220,000 (2011 year)

Net income
$ 70,000 (2012 year)
$ 60,000 (2011 year)

Additional information:

Cash from operating activities
$82,000 (2012 year)
$56,000 (2011 year)

Cash used for capital expenditures
$45,000 (2012 year)
$38,000 (2011 year)

Dividends paid
$20,000 (2012 year)
$15,000 (2011 year)

Average number of shares outstanding
33,000 (2012 year)
30,000 (2011 year)

Compute and interpret liquidity, solvency, and profitability ratios.

(SO 2, 4, 5), AP

Instructions

Compute these 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 financial position and operating results from 2011 to 2012 of Sievert Corporation.