Financial statement data for Chen Corporation is as follows:
Operating expenses $1,458,000
Interest expense $10,000
Income Tax expense $85,000
Current assets $4,07,200
Non-current assets $532,000
Current liabilities $1,66,325
Non-current liabilities $108,500
Share price $25
Weighted average number of common shares $76,000
a) Calculate working capital. Comment on the relative liquidity.
b) Calculate the current ratio. Comment on the relative liquidity.
c) Calculate the Net Income. the basic earnings per share, and the price earnings ratio.
Assume that the Net Income you calculate equals the income available to common
shareholders. Comment on the relative profitability