The income statements and balance sheets of Illinois Corporation and Ohio Corporation are presented below:

Assume that the balances in asset and equity accounts at year-end approximate the average balances during the period. The income tax rate is 40 percent. On the basis of this information, which company is a More profitable?
b More liquid?
c More secure in terms of long-term solvency?
Use financial ratios, as appropriate, in doing your analysis.

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Income Statements for the Year 1979 Sales Less Expenses: Cost of Goods Sold Selling and Administrative Expenses Interest Expense Income Tax Expense Total Expenses Net Income Illinois Corp. Ohio Corp. $4,300,000 $3,000,000 $2,800,000 $1,400,000 330,000 580,000 100,000 200,000 428,000 $3,658,000 $ 642,000 328,000 $2,508,000 $ 492,000