(Financial statement analysis) Carson Electronics' management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found below:

Cash Accounts receivable Inventories Current assets Net fixed assets Total assets Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity Carson Electronics, Inc. Balance Sheet (3000) $2,000 4,500 1.500 $ 8,000 16.000 $24,000 $2,500 1,000 3.500 $7,000 8,000 9.000 $24.000 BET Electronics, Inc. Balance Sheet (5000) $ 1,500 6,000 2,500 $10,000 25.000 $35.000 $ 5,000 1,500 1.500 $ 8,000 4,000 23.000 $35.000 Carson Electronics, Inc. Income Statement (5000) BGT Electronics Inc. Income Statement (5000) Net sales (all credit) $48,000 $70,000 Cost of goods sold 36,000) (42,000) Gross profit $12,000 $28,000 Operating expenses (8,000) (12,000) Net operating income $ 4,000 $16,000 Interest expense (1,150) (550) Earnings before taxes 2,850 15,450 Income taxes (40%) (1.140) (6,180) Net income $ 1.710 9.270