Comparative financial statement data for Chen Corporation and Couric Corporation, two competitors, appear below. All balance sheet data are as of December 31, 1998, and December 31, 1997.

Additional information: Cash provided by operations for 1998 was \(\$ 162,594\) for Chen and \(\$ 24,211\) for Couric.
\section*{Instructions}

(a) Comment on the relative profitability of the companies by computing the return on assets ratios and the profit margin ratios for both companies.

(b) Comment on the relative liquidity of the companies by computing working capital, the current ratios, and the current cash debt coverage ratios for both companies.

(c) Comment on the relative solvency of the companies by computing the debt to total assets ratio and the cash debt coverage ratio for each.

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Chen Corporation Couric Corporation 1998 1997 1998 1997 Net sales $1,549,035 Cost of goods sold 1,080,490 $339,038 238,006 Operating expenses 302,275 79,000 Interest expense 6,800 1,252 Income tax expense 47,840 7,740 Current assets 325,975 $312,410 83,336 $ 79,467 Plant assets (net) 521,310 500,000 139,728 125,812 Current liabilities 66,325 75,815 35,348 30,281 Long-term liabilities 108,500 90,000 29,620 25,000 Common stock, $10 par 500,000 500,000 120,000 120,000 Retained earnings 172,460 146,595 38,096 29,998.