Shown below is the liabilities and stockholders' equity section of the balance sheet for Ayayai Company and Pina Company. Each has assets totaling $4,453,000.

Ayayai Co.		PinaCo.
Current liabilities		$295,000		Current liabilities		$895,000
Long-term debt,11%		1,210,000		Common stock ($20 par)		2,810,000
Common stock ($20 par)		2,200,000		Retained earnings (Cash dividends, $332,000)		748,000
Retained earnings (Cash dividends, $225,000)		748,000
		$4,453,000				$4,453,000

For the year, each company has earned the same income before interest and taxes.

		Ayayai Co.		Pina Co.
Income before interest and taxes		$1,190,000		$1,190,000
Interest expense		133,100		0
		1,056,900		1,190,000
Income taxes (20%)		211,380		238,000
Net income		$845,520		$952,000

At year-end, the market price of Ayayai's stock was $101 per share, and Pina's was $63.50. Assume balance sheet amounts are representative for the entire year.