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The 2015 financial statements for the Ernst and Young companies are summarized here Young Company Ernst Company Balance sheet Cash Accounts receivable (net) Inventory Operational assets (net) Other assets $ 41,800 39,800 99,100 141,600 86,000 $ 22,600 31,200 41,300 401,300 306,800 Total assets $408,300 $803,200 Current liabilities Long-term debt (8%) Capital stock (par $10) Contributed capital in excess of par Retained earnings $ 98,900 63,400 148,100 29,300 68,600 $ 47,500 59,500 510,000 104,500 81,700 Total liabilities and stockholders' equity $408,300 $803,200 Income statement Sales revenue (1/3 on credit) Cost of goods sold Expenses (including interest and income tax) $448,000 (242,500) (16,100) $803,200 (398,600) (311,100) Net income $189,400 $ 93,500 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 $ 19,700 95,900 61,700 $ 39,800 45,800 48,100 20 40% 40% $ 33,400 $148,600 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 audit by a CPA but Young Company does not

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