Two textile companies, McNulty-Grunewald Manufacturing and Jackson-Kenny Mills, began operations with identical balance sheets. A year later both required additional manufacturing capacity at a cost of$150,000.McNulty-Grunewald obtained a 5-year,$150,000loan at a7%interest rate from its bank. Jackson-Kenny, on the other hand, decided to lease the required$150,000capacity from National Leasing for 5 years; a7%return was built into the lease. The balance sheet for each company, before the asset increase, is as follows: