Comparative statement data for Smyth Company and James Company, two competitors, are presented 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.

Smyth Company James Company 3 Cost of goods sold Interest cxpensc Income tax expensc Plant asscts (net) Current liabilities Long-term liabilitics Cash from o Capital expenditures 2 pcrating activities 2 Average number of shares outstanding