Below is the summary information from the financial statements of two companies competing in the same industry: Income Statement for the year ended 31 December 2021 Panda Company Koala Company $3000 5000 Sales 770,000 880,200 Cost of goods sold $39.100 589,400 Gross profit 230,900 290,800 Operating expenses 46,000 43,100 Interest expense 1.900 13.000 Net profit before tax 177,000 234,700 Income tax expense 24.300 Net profit afer tox 162.200 210,400 Basic earnings per share 54.51 $5.11 Page 14 Balance Sheet as at 31 December 2021 Panda Company Company Asact 500 Cash 19,500 34,000 Accounts receivable 37,400 57,400 Notes receivable (trade & current) 9.100 7,200 Merchandise inventory 84,440 132.500 Prepaid expenses 5,000 6,950 Property, plant and equipment 290,000 304,400 Total Assets 445.440 542.450 Liabilities and Equity Current liabilities 61,340 93,300 Notes payable (long-term) 80,00 101,000 Share capital 180,000 206,000 Retained earnings 142.150 Total Liabilities and Equity 445,440 $42,450 Beginning-of-year balances (January 2021) Accounts receivable 29,300 54.200 Notes receivable (trade & current) 0 Merchandise inventory 55,600 107,400 Total assets 398,000 382.500 Share capital 180,000 206,000 Retained earnings 98,300 93,600 Additional information: Dividend paid (per share) 53.50 Current market price (per share) 575 $355 570