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The comparative balance sheets of Sage Corporation at the beginning and end of the year 2020 appear below.

SAGE CORPORATION BALANCE SHEETS
		Dec. 31, 2020				Jan. 1, 2020				Inc./Dec.
Assets
Cash			$21,880				$15,320			$6,560	Inc.
Accounts receivable			107,880				90,320			17,560	Inc.
Equipment			40,880				24,320			16,560	Inc.
Less: Accumulated Depreciation-Equipment			(17,000	)			(11,000	)		6,000	Inc.
Total			$153,640				$118,960
Liabilities and Stockholders Equity
Accounts payable			$21,880				$17,320			4,560	Inc.
Common stock			101,880				82,320			19,560	Inc.
Retained earnings			29,880				19,320			10,560	Inc.
Total			$153,640				$118,960

Net income of $45,880 was reported, and dividends of $35,320 were paid in 2020. New equipment was purchased and none was sold.

Compute the current ratio (current assets current liabilities) as of January 1, 2020, and December 31, 2020. (Round ratios to 1 decimal place., e.g. 4.5.)

		December 31, 2020		January 1, 2020
Current ratio

Compute free cash flow for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Free Cash Flow

$

In light of the analysis in (part b), comment on Sages liquidity and financial flexibility.

Sage company has (bad/good) liquidity and (bad/good) financial flexibility.

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