Sievert Corporation Financial Ratio Analysis

P2-6ACondensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page.SIEVERT CORPORATIONBalance SheetsDecember 31 Assets(2012 year)2011Cash$ 28,000 (2012 year)$ 20,000 (2011 year)Receivables (net)70,000 (2012 year)62,000 (2011 year)Other current assets90,000 (2012 year)73,000 (2011 year)Long-term investments62,000 (2012 year)60,000 (2011 year)Plant and equipment (net)510,000 (2012 year)470,000 (2011 year)Total assets$760,000 (2012 year)$685,000 (2011 year)Liabilities and Stockholders’ EquityCurrent liabilities$ 75,000 (2012 year)$ 70,000 (2011 year)Long-term debt80,000 (2012 year)90,000 (2011 year)Common stock330,000 (2012 year)300,000 (2011 year)Retained earnings275,000 (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 20122011Sales$750,000 (2012 year)$680,000 (2011 year)Cost of goods sold440,000 (2012 year)400,000 (2011 year)Operating expenses (including income taxes)240,000 (2012 year)220,000 (2011 year)Net income$ 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 outstanding33,000 (2012 year)30,000 (2011 year)Compute and interpret liquidity, solvency, and profitability ratios.(SO 2, 4, 5), APInstructionsCompute 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.