Question

The comparative statement of financial position of Flint Corporation as at December 31, 2020, follows:

FLINT CORPORATION Statement of Financial Position December 31
		December 31
Assets		2020			2019
Cash		$	50,000		$	1,400
Accounts receivable			89,200			88,800
Equipment			26,200			22,200
Less: Accumulated depreciation			(5,400	)		(11,300	)
Total		$	160,000		$	101,100
Liabilities and Shareholders’ Equity
Accounts payable		$	20,000		$	10,000
Common shares			100,000			75,700
Retained earnings			40,000			15,400
Total		$	160,000		$	101,100

Net income of $37,100 was reported and dividends of $12,500 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,000 (cost of $11,500 and accumulated depreciation of $7,500) was sold for $8,000.

(a)

Calculate the current ratio and debt to total assets ratio as at December 31, 2019 and 2020. Calculate the free cash flow for December 31, 2020. (Round answers to 2 decimal places, e.g. 52.75.)

		2020			2019
Current Ratio		enter the current ratio rounded to 2 decimal places	:1		enter the current ratio rounded to 2 decimal places	:1
Debt to total assets ratio		enter percentages rounded to 2 decimal places	%		enter percentages rounded to 2 decimal places	%

Free cash flow, December 31, 2020 = ( enter amount ) $

Answer 1