The following items are taken from the financial statements of Grove Company for 2014: \[\begin{array} { l r } \text { Accounts payable } & \$ 18,500 \\ \text { Accounts receivable } & 8,000 \\ \text { Accumulated depreciation-equipment } & 4,800 \\ \text { Bonds payable } & 18,000 \\ \text { Cash } & 24,000 \\ \text { Common stock } & 25,000 \\ \text { Cost of goods sold } & 27,000 \\ \text { Depreciation expense } & 4,800 \\ \text { Dividends } & 5,300 \\ \text { Equipment } & 44,000 \\ \text { Interest expense } & 2,500 \\ \text { Patents } & 7,500 \\ \text { Retained earnings, January 1 } & 16,000 \\ \text { Salaries and wages expense } & 5,200 \\ \text { Sales revenue } & 50,500 \\ \text { Supplies } & 4,500 \end{array}\] Instructions (a) Prepare an income statement and a classified balance sheet for Grove Company. (b) Compute the following ratios and values: 1. Current ratio 2. Debt to assets ratio 3. Working capital 4. Earnings per share (Grove's average number of shares outstanding during the year was 5,000.)

@#IMG-DLM& *Retained earnings = $21700 ($16000 + $

Use the following data to calculate the liquidity and profitability ratios listed below. \[\begin{array} { l r l r } \text { Average common shares outstanding } & 10,000 & \text { Current liabilities } & \$ 100,000 \\ \text { Capital expenditures } & \$ 20,000 & \text { Net income } & 21,000 \\ \text { Cash provided by operating activities } & 32,000 & \text { Net sales } & 150,000 \\ \text { Dividends paid } & 5,000 & \text { Total liabilities } & 126,000 \\ \text { Current assets } & 190,000 & \text { Total assets } & 210,000 \end{array}\] Instructions Compute the following: (a) Current ratio. (d) Debt to assets ratio. (b) Working capital. (e) Free cash flow. (c) Earnings per share.

(a) Current ratio = Current assets ÷ Cur

A) comparative prior-period information must be presented, but financial statements need not be provided annually. B) comparative prior-period information must be presented, and financial statements must be provided annually. C) comparative prior-period information is not required, but financial statements need not be provided annually. D) comparative prior-period information is not required, but financial statements must be provided annually. A) comparative prior-period information must be presented, but financial statements need not be provided annually. B) comparative prior-period information must be presented, and financial statements must be provided annually. C) comparative prior-period information is not required, but financial statements need not be provided annually. D) comparative prior-period information is not required, but financial statements must be provided annually.