I'wo companies competing in the same industry are being evaluated by a bank that can lend CASE 1 - 31 money to only one of them . Summary information from the financial statements of the two Comparative Analysis .` Companies follows : Credit and Equity Datatech Sigma Datatech Sigma Analysis Company Company Company Company Data from the current year -end balance sheet : Data from the current year's income statement :" Assets ... Sales .` $660 , 000| $780 , 200* Cash .. $ 18.500 $ 33, 000 Cost of goods sold .* 485, 100 532, 500 Accounts receivable , net .. 36. 400 56, 400 Interest expense* 6.900 1 1 , 000 Notes receivable ( trade )* 8. 100 6, 200 Income tax expense .. 12, 800 19. 300 Merchandise inventory 83.440 131, 500 Net income .` 67 , 170 105,000 Prepaid expenses 4. 000 5.950 Basic earnings per share .... 1. 94 2.56 Plant and equipment , net .... 284, 000 303 , 400 Total assets ...... $434, 440 $536, 450