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The 2015 financial statements for the Ernst and Young companies are summarized here Ernst Young Company Company Balance sheet Cash Accounts receivable (net) Inventory Operational assets (net) Other assets $ 41,700 39,000 101,000 141,000 85,300 $21,500 31,800 41,700 401,900 305,200 Total assets S 408,000 $802,100 Current liabilities Long-term debt (996) Capital stock (par $10) Contributed capital in excess of par Retained eanings $ 97,200 63,300 149,800 30,600 67,100 $48,700 59,600 510,500 105,500 77,800 Total liabilities and stockholders' equity $ 408,000 $802,100 Income statement Sales revenue (1/3 on credit) Cost of goods sold Expenses (including interest and income tax) 448,300 (242,800) (16,300) $803,300 (399,900) (312,100) Net income 189,200 $ 91,300 Selected data from the 2014 statements Accounts receivable (net) Inventory Long-term debt Other data Per share price at end of 2015 (offering price) Average income tax rate Dividends declared and paid in 2015 $ 18,900 94,800 60,200 $38,700 45,400 48,300 20 20% 20% 33,000 $149,700 The companies are in the same line of business and are direct competitors in a large metropolitan area.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. Young is more conservative, and as its president has said, "We avoid what we consider to be undue risk." Neither company is publicly held. Ernst Company has an annual audi t by a CPA but Young Company does not

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