Comparative financial statement data for Duran Corporation and Kiepert Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2012.

Instructions(a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2012.(b) Comment on the relative liquidity of the companies by computing working capital and the current ratios for each company for 2012.(c) Comment on the relative solvency of the companies by computing the debt to total assets ratio and the free cash flow for each company for2012.

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Duran Corporation Kiepert Corporation 2012 2012 $620,000 340,000 98,000 3,800 $1,800,000 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets 1,175,000 283,000 9,000 85,000 36,000 407,200 190,336 139,728 Plant assets (net) Current liabilities 532,000 66,325 108,500 138,000 33,716 40,684 36,000 20,000 15,000 Long-term liabilities Cash from operating activities Capital expenditures Dividends paid on common stock 90,000 36,000 Average number of shares outstanding 80,000 50,000