Condensed balance sheet and income statement data for Fellenz Corporation are presented below.


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Condensed balance sheet and income statement data for Fellenz Corporation are presented below. FELLENZ CORPORATION Balance Sheets December 31 FELLENZ CORPORATION Balance Sheets December 31 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 FELLENZ CORPORATION Income Statements For the Years Ended December 31 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.

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