Two companies have the following balance sheets as of December
Two companies have the following balance sheets as of December 31, 20X8:


In 20X9, each company had sales of $700,000 and operating expenses of $600,000. Sunriver had not repaid the $125,000 Note Payable as of December 31, 20X9. Neither company incurred any new interest-bearing debt in 20X9. Ignore income taxes. Did the two companies earn the same net income and the same operating income? Explain, showing computations of operating income and netincome.
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