You must show your work in order to receive credit for this assignment. Problem 1 Comparative ratio analysis Olivia Company and Adam Company are the two largest competitors in their industry. Listed below is some summary information from the financial statements of two companies. Olivia Adam Company Company Data from the current year-end balance sheets Olivia Company Company Adam Data from the current year's income statement 770,0 904,2 Assets Sales 00 00 Cash 22,00 0 37,00 Cost of goods sold 0 595,1 00 650,5 00 39,40 58,40 13,00 Accounts receivable, net 0 0 Interest expense 8,500 0 84,64 142,5 14,80 24,96 Merchandise inventory Income tax expense 0 00 0 2 151,6 Prepaid expenses 6,100 7,000 Net income 00 215,7 38 Plant assets, net 310,0 00 304,4 Basic earnings per share 4.46 4.99 00 Total assets $ 462,1 40 549,3 Cash dividends per share 3.74 4.02 00 Liabilities and Equity Beginning-of-year balance sheet data 66,34 93,30 Current liabilities $ $ Accounts receivable, net 0 0 $ 29,80 58.20 0 Long-term notes payable 86,80 0 107,0 00 61,60 117,4 Merchandise inventory 0 00 170,0 Common stock, $5 par value 00 216,0 00 Total assets 398,0 00 412,5 00 Retained earnings 139,0 00 133,0 170,0 216,0 Common stock, $5 par value 00 00 00 Total liabilities and equity $ 462,1 40 549,3 00 Retained earnings 114,5 90,92 60 6