Comparative statement data for Al Sharif Company and Weber Company, two competitors, are presented below. All balance sheet data are as of December 31, 2012.

Instructions(a) Compute 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 ratio 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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Al Sharif Company Weber Company 2012 2012 $890,000 Net sales $450,000 Cost of goods sold Operating expenses Interest expense Income tax expense 260,000 130,000 6,000 10,000 180,000 600,000 75,000 190,000 46,000 20,000 4,000 620,000 59,000 10,000 65,000 Current assets 700,000 800,000 300,000 200,000 Plant assets (net) Current liabilities Long-term liabilities Cash from operating activities Capital expenditures Dividends paid 180,000 50,000 15,000 Average number of shares outstanding 200,000 400,000