Solve the following question

Question 5: The following statements are extracted from the Books of Alex. Co and F.Q. Co. Balance Sheet Alex. Co F.Q. Co industry Avg Cash 50,000 45,000 7.21% Accounts receivable 80,000 70,000 15.32% Inventories 188,880 145,000 19.82% Plant & equipment 300,120 280,000 64.86% Less accumulated depreciation -20,000 -30,000 -7.21% Total assets 599,000 510,000 100.00% Accounts payable 110,000 125,000 27.93% Accrued liabilities 79,000 60,000 16.22% Mortgage payable 80,000 40,000 17.12% Common stock 130,000 110,000 3.60% Retained earnings 200,000 175,000 35.14% Total liabilities and equity 599,000 510,000 100.00% Income Statement Alex. Co F.Q. Co industry Ave Sales 900,000 960.000 100.00% Cost of Sales -690,000 -734.680 -76.60% Gross profit 210,000 225,320 23.40% Administrative expenses -35,000 29.956 -3.49% Distribution expenses -12,000 -10.944 -1.23% Operating profit 163,000 184.420 18.68% Interest expense -11,000 -21.890 -1.77% Profit before tax 152,000 162,530 16.91% Tax 9,000 -11,520 -1.10% Net income 143,000 151,010 15.81% Note: Cash dividends paid this year were 35% of the net income