Comparative financial statement data for Arthur Corporation and Lancelot Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2017.

Arthur Corporation

Lancelot Corporation

2017

2017

	Net sales	$1,850,000	$620,000
	Cost of goods sold	1,225,000	365,000
	Operating expenses	303,000	98,000
	Interest expense	9,000	3,800
	Income tax expense	85,000	36,800
	Current assets	427,200	130,336
	Plant assets (net)	532,000	139,728
	Current liabilities	66,325	35,348
	Long-term liabilities	148,500	29,620

Additional Information:

	Cash from operating activities	$153,000	$44,000
	Capital expenditures	$90,000	$20,000
	Dividends paid	$36,000	$15,000
	Average number of shares outstanding	100,000	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 solvency of the companies by computing the debt to assets ratio for each company for 2017.

You can pick to do either a. or b. but you must show the numbers you use to derive your calculation (this time you don't have to label, that is, provide a description) and provide a comment related to relative profitability or solvency (based on which question you pick). You don't need to do both (a) and (b).

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