Read the information provided in Transparency Master 13-1.After reviewing the information, comment, in writing, any strengths or weaknesses you see in the two companies. Examine the make up of the organizations, will either company have difficulty in remaining competitive with the other, how about the collections of the organizations, what about their cash holdings, as well as their fixed assets?

Transparency Meest 13-1 WRITING EXERCISE Review the following financial data from two companies in the same industry. Comment on any strengths or weaknesses you notice. Income statements: Company A Company B Sales $500,000 $500,000 Expenses. 425,000 425,000 Net Income $ 75,000 $_75,000 Cash held: Beginning of year $ 25,000 $ 25,000 End of year. 25,000 25.000 Increase in cash. A detailed analysis of the cash account reveals the following cash ro- ceipts and payments: $450,000 5,000 $455,000 $350,000 60.000 $410,000 Cash received: from customers. from sale of fixed assets Total cash received.... Cash paid: to suppliers......... for purchase of fixed assets. for purchase of investments Total cash paid.... Increase in cash $380,000 70,000 5,000 $455.000 0 $400,000 10,000 0 $410,000 0