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Cash Mkt.able Securities Account Receivable Inventories Current Assets Net Fixed Assets Intangible Assets Total Assets Balance Sheet XYZ 80 18 65 62 32 78 255

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Cash Mkt.able Securities Account Receivable Inventories Current Assets Net Fixed Assets Intangible Assets Total Assets Balance Sheet XYZ 80 18 65 62 32 78 255 55 70 380 80 135 165 380 Account Payable Debt due in 1 year Current Liabilities Long-term Debt Total Equity Total Liabilities and Equity Income Statement XYZ Sales Costs Depreciation EBIT Interest Expenses EBT Tax Net Income 585 200 100 285 30 255 76.5 178.5 (g) You are comparing firm XYZ with ABC. As a investor, which firms you prefer? Why? All Smillion Cash Mkt.able Securities Account Receivable Inventories Current Assets Net Fixed Assets Intangible Assets Total Assets Balance Sheet ABC 100 200 250 500 1050 1000 350 2400 200 300 500 1500 400 2400 Account Payable Debt due in 1 year Current Liabilities Long-term Debt Total Equity Total Liabilities and Equity Income Statement ABC Sales Costs Depreciation EBIT Interest Expenses EBT Tax Net Income 295 150 50 95 25 74 24 50

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