Comparative financial statement data for Loeb Corporation and Bowsh Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2025.

Instructions

a. Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2025.

b. Comment on the relative liquidity of the companies by computing working capital and the current ratio for each company for 2025.

c. Comment on the relative solvency of the companies by computing the debt to assets ratio for each company for 2025.

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Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Dividends paid on common stock Weighted-average common shares outstanding Loeb Corporation $1,800,000 1,175,000 283,000 9,000 85,000 407,200 532,000 66,325 108,500 36,000 80,000 Bowsh Corporation $620,000 340,000 98,000 3,800 36,000 190,336 139,728 33,716 40,684 15,000 50,000