have been asked by a client to advice on the financial position of two companies in a similar trade sector. You have been supplied with the following financial statements. Income Statement for the year ended $31$ March $2016$ James LtdSmith Ltd Notes$000000$Revenue $638493$Cost of sales $(331)(297)$ Gross profit $307196$Distribution costs $(36)(29)$Administrative expenses$1(99)(46)$ Profit before taxation $172121$Taxation $(21)(22)$ Profit for the year $15199============$ Statement of financial position as at $31$ March $2016$ Notes James Ltd Smith Ltd Noncurrent assets $($NBV$)$: $000000000000000000$ Property, plant and equipment$1198111$ Current assets: Inventory $6058$ Trade and other receivables $3543$ Cash and cash equivalents $297101$ Total assets $295212$ Equity and liabilities: $========$ Share capital $(1$ share each$)5030$ Retained earnings $16166$ Noncurrent liabilities: $21196$ Borrowings $20$ Current liabilities: Trade and other payables$27474$ Current tax payable $1012$ Bank overdraft $10849684116$ Total equity and liabilities $295212========$ Notes to the financial statements: $1.$ The noncurrent assets held by the companies are as follows: James LtdSmith Ltd $000000$Land and buildings$9743$Fixtures and fittings$2817$Motor vehicles$7351198111$