The current year financial statements for Blue Water Company and Prime Fish Company are presented below Blue Water Prime Fish Balance sheet: $ 20,700 31,900 41,800 404,600 308,000 807,000 S 53,500 60,600 515,000 106,300 71,600 807,000 $ 41,300 Accounts receivable (net) 39.500 97,500 144,500 Property& oquipment (net) Other assets Total assets Current liabilities Long-term debt interest rate: 15% Capital stock (S10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year 84,300 40.100 S 97,500 67,100 150,100 29,300 63,100 407,100 S 442,500 (239,500) 161,600 S 799,000 (400,300) 311,300 41400_ 5 87 400 $ 22.3 45% 45% S 33,300 S 149,500 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held