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The financial statements of Oasis Company are presented here. OASIS COMPANY Income Statement For the Year Ended December 31, 2009
Net sales	$700,000
Cost of goods sold	400,000
Selling and administrative expenses	150,000
Interest expense	7,800
Income tax expense	43,000
Net income	$ 99,200
OASIS COMPANY Balance Sheet December 31, 2009
Assets Current assets Cash $ 22,100 Debt investments 34,800 Accounts receivable (net) 90,700 Inventory 155,000 Total current assets 302,600 Plant assets (net) 461,300 Total Assets $763,900 Liabilities and Stockholders Equity Current liabilities Accounts payable $119,700 Income taxes payable 29,000 Total current liabilities 148,700 Bonds payable 110,000 Total liabilities 258,700 Stockholders equity Common stock 170,000 Retained earnings 335,200 Total stockholders equity 505,200 Total liabilities and stockholders equity $763,900 Net cash provided by operating activities $61,300 Capital expenditures $42,000 Dividends paid $10,000 Average number of shares outstanding 65,000 Tasks (a) Compute the following values and ratios for 2009(We provide the results from 2008 for comparative purposes.) (i) Current ratio. (2008: 2.4:1) (ii) Net Working capital. (2008: $178,000) (iii) Debt to assets ratio. (2008: 31%) (iv) Free cash flow. (2008: $13,000) (v) Earnings per share. (2008: $1.35) (b) Using your calculations from part (a), discuss changes from 2008 in liquidity, solvency, and profitability.

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