The current year financial statements for Blue Water Company and Prime Fish Company are presented below.

Blue Water Prime Fish

Balance sheet

Cash $ $41,000$ $ $21,000$

Accounts receivable $($net$)38,00031,000$

Inventory $99,00040,000$

Property & equipment $($net$)140,000401,000$

Other assets $84,000305,000$

Total assets $ $402,000$ $ $798,000$

Current liabilities $ $99,000$ $ $49,000$

Long$-$term debt $($interest rate: $10\%)65,00060,000$

Capital stock $($$$10$ par value$)148,000512,000$

Additional paid$-$in capital $29,000106,000$

Retained earnings $61,00071,000$

Total liabilities and stockholders$$ equity $ $402,000$ $ $798,000$

Income statement

Sales revenue $(1/3$ on credit$)$ $ $447,000$ $ $802,000$

Cost of goods sold $(241,000)(400,000)$

Operating expenses $(161,000)(311,000)$

Net income $ $45,000$ $ $91,000$

Other data

Per share stock price at end of current year $ $22$ $ $15$

Average income tax rate $30\%30\%$

Dividends declared and paid in current year $ $33,000$ $ $148,000$

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.