2 The following are from the latest financial statements of Ytrew Limited and its main competitor, both of which are manufacturing firms: 1 of 2 Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Profit before tax Tax (30%) Net profit Current assets Cash Accounts receivable Inventories Total current assets Fixed assets Total Assets Current liabilities Income statement Ytrew Limited Competitor $ 2,426,500 $ 30,173,000 (1,819,875) (22,629,750) 606,625 7,543,250 (194,120) (2,715,570) 412,505 4,827,680 (117,859) (1,072,818) 294,646 3,754,862 (88,394) (1,126,459) 206,252 2,628,403 Balance sheet Ytrew Limited Competitor $ 24,265 232,678 301,730 2,975,967 75,828 983,902 332,771 4,261,599 722,229 7,343,401 1,055,000 11,605,000 Accounts payable $ 48,530 $ 603,460 Accrued expenses 24,265 301,730 Short-term notes payable 72,795 905,190 Total current liabilities 145,590 1,810,380 Long-term debt 218,385 2,715,570 Total liabilities 363,975 4,525,950 Shareholders' equity 691,025 7,079,050 Total liabilities and shareholders' equity 1,055,000 11,605,000 Required: Based on your results from part 1, compare and discuss the liquidity and capital structure of the two firms