P2-6B Condensed balance sheet and income statement data for Fellenz Corporation are presented below

P2-6B Condensed balance sheet and income statement data for Fellenz Corporation are presented below.

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

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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