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:
Events
Occurrences or happenings, often of significance, that are scheduled or observed.
Situations
Sets of conditions or circumstances at a certain time and place.
Interactions
The processes or actions taken wherein two or more entities or variables affect or influence each other.
Concepts
Broad and general ideas that are fundamental building blocks of theories or models used to classify and organize specific observations.
Q38: Identify and briefly explain the two fundamental
Q90: Using the allowance method, the uncollectible accounts
Q109: Financing activities include the purchase or sale
Q123: Customarily, a trial balance is prepared<br>A) at
Q135: Revenues are a subdivision of stockholders' equity.
Q193: During January 2014, its first month of
Q203: Equipment costing $20,000 machine is purchased by
Q235: Using the percentage-of-receivables method for recording bad
Q244: A major advantage of national credit cards
Q246: Smithson Corporation's unadjusted trial balance includes