$9,157 (b) Prepare a classified balance sheet for Lazuris Enterprises as of April 30, 2017. comment on ity, liquidity, P2-4 Comparative financial statement data for Loeb Corporation and Bowsh Corpo- ration, two competitors, appear below. All balance sheet data are as of December 31, 2017. Loeb Corporation 2017 Net sales $1,800,000 Cost of goods sold 1,175,000 Operating expenses 283,000 Interest expense 9,000 Income tax expense 85,000 Current assets 407,200 Plant assets (net) 532,000 Current liabilities 66,325 Long-term liabilities 108,500 Net cash provided by operating activities 138,000 Capital expenditures 90,000 Dividends paid on common stock 36,000 Weighted average number of shares outstanding 80,000 Bowsh Corporation 2017 $620,000 340,000 98,000 3,800 36,000 190,336 139,728 33,716 40,684 36,000 20,000 15,000 50,000 Instructions (a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2017 (b) Comment on the relative liquidity of the companies by computing working capital and the current ratio for each company for 2017. (c) Comment on the relative solvency of the companies by computing the debt to assets ratio and the free cash flow for each company for 2017. $9,157 (b) Prepare a classified balance sheet for Lazuris Enterprises as of April 30, 2017. comment on ity, liquidity, P2-4 Comparative financial statement data for Loeb Corporation and Bowsh Corpo- ration, two competitors, appear below. All balance sheet data are as of December 31, 2017. Loeb Corporation 2017 Net sales $1,800,000 Cost of goods sold 1,175,000 Operating expenses 283,000 Interest expense 9,000 Income tax expense 85,000 Current assets 407,200 Plant assets (net) 532,000 Current liabilities 66,325 Long-term liabilities 108,500 Net cash provided by operating activities 138,000 Capital expenditures 90,000 Dividends paid on common stock 36,000 Weighted average number of shares outstanding 80,000 Bowsh Corporation 2017 $620,000 340,000 98,000 3,800 36,000 190,336 139,728 33,716 40,684 36,000 20,000 15,000 50,000 Instructions (a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2017 (b) Comment on the relative liquidity of the companies by computing working capital and the current ratio for each company for 2017. (c) Comment on the relative solvency of the companies by computing the debt to assets ratio and the free cash flow for each company for 2017
