Comparative financial statement data for Bedene Corporation and Groneman Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2010.

Instructions
(a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2010.
(b) Comment on the relative liquidity of the companies by computing working capital and the current ratios for each company for 2010.
(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 for2010.

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Bedene Corporation Groneman Corporation 2010 2010 Net sales Cost of goods sold Operating expenses Interest expense Income tax Current asscts Plant assets (net) Current liabilities Long-term liabilitics Cash from opcrating activities Capital expenditures Dividends paid $1,900,000 1,175,000 303,000 9,000 85,000 407,200 532,000 66,325 108,500 138,000 90,000 36,000 $620,000 340,000 98,000 3,800 36,000 190,336 139,728 40,348 29,620 36,000 20,000 15,000 expensc Average number of shares 100,000 50,000 outstanding