Problem 2-4 Comparative financial statement data for Pharoah Company and Sunland Company, two competitors, appear below. All balance sheet data are as of December 31, 2017. Pharoah Sunland Company Company 2017 2017 Net sales $2,628,000 $905,200 Cost of goods sold 1,715,500 496,400 Operating expenses 413,180 143,080 Interest expense 13,140 5,548 Income tax expense 124,100 52,560 Current assets 455,000 197,736 Plant assets (net) 776,720 204,003 Current liabilities 96,835 49,225 Long-term liabilities 158,410 59,399 Net cash provided by operating activities 201,480 52,560 Capital expenditures 131,400 29,200 Dividends paid on common stock 52,560 21,900 Weighted-average number of shares outstanding 80,000 50,000 (a) (a) Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.) Net Income Earnings per share Pharoah Company $ $ Sunland Company (b) Compute working capital and the current ratios for each company for 2017. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.) Working Capital Current Ratios Pharoah Company :1 Sunland Company :1 (c) Compute the debt to assets ratio and the free cash flow for each company for 2017. (Round debt to assets to 1 decimal place, e.g. 78,9%, Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Debt to Assets Free Cash Flow Pharoah Company % Sunland Company %