QUESTION $3$

$(8$ MARKS$)$

BTB Electronics Inc. manufactures parts, components, and processing equipment for electronics and semiconductor applications in the communications, computer, automotive, and appliance industries. Its sales tend to vary with changes in the business cycle because the sales of most of its customers are cyclical. Exhibit $3\mathrm{.}30$ presents balance sheets for BTB as of December $31,$ Year $7$ through Year $9,$ and Exhibit $3\mathrm{.}31$ presents income statements for Year $8$ and Year $9.$

$\backslash$table$[[$Exhibit $3\mathrm{.}30$