Financial Statements: Target Company 1 Balance Sheet Assets Sales Revenue Target Company 1 Income Statement Cash and Cash Equivalents 50000 Cost of Goods Sold Short-term Marketable Securities 30000 Gross Profit 295000 115000 180000 Accounts Receivable 15000 Inventories 15000 Long-term Marketable Securities 30000 General Expenses 10000 Properties, Plant and Equipment 20000 Rent 20000 Bank & ATM Expenses 1000 Liabilities Equipment Expenses 25000 Accounts Payable 30000 Marketing Expenses 5000 Accrued Expenses (Current) 15000 Commericial Paper 10000 Operating Earnings 119000 Current Portion of Long-term Debt 10000 Long-term Debt Interest Expense 5000 20000 Earnings Before Income Tax 114000 Shareholder's Equity Income Tax Expense 20000 Total Shareholder's Equity 75000 Net Income 94000 Target Company 2 Target Company 2 Balance Sheet Income Statement Assets Sales Revenue 130000 Cash and Cash Equivalents 20000 Cost of Goods Sold 90000 Short-term Marketable Securities 10000 Gross Profit 40000 Accounts Receivable 6000 Inventories 15000 Long-term Marketable Securities 15000 General Expenses 10000 Properties, Plant and Equipment 32000 Rent 15000 Bank & ATM Expenses 500 Liabilities Equipment Expenses 5000 Accounts Payable 35000 Marketing Expenses 3000 Accrued Expenses (Current) 10000 Commericial Paper 2000 Operating Earnings 6500 Current Portion of Long-term Debt 1000 Long-term Debt 30000 Interest Expense 3500 Earnings Before Income Tax 3000 Shareholder's Equity Income Tax Expense 600 Total Shareholder's Equity 20000 Net Income 2400