Comparative Financial Statement Data for Arthur Corporation and Lancelot Corporation

question 158

Essay

Comparative financial statement data for Arthur Corporation and Lancelot Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2014. Instructions
(a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2014.
(b) Comment on the relative solvency of the companies by computing the debt to assets ratio and the free cash flow for each company for 2014.

---

Definitions:

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Negative Punishment

Decreasing a behavior by removing a desirable stimulus after the behavior occurs.

Negative Reinforcement

A concept in behavioral psychology where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of it recurring.

Negative Self-talk

A form of internal dialogue focused on criticizing or undervaluing oneself that can impact one's emotional state and self-esteem.