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Evening Books Limited is considering the acquisition of a bookbinding company to expand its publishing interests. Its chief executive has highlighted two possible targets, Crawl Binding Limited and TriPot Publishing Services Limited. The following information has been obtained for their most recent financial years:

	Crawl Binding		TriPot Publishing
Income Statement Sales (-)Cost of Sales Gross Profit (-) Distribution expenses Administration expenses Profit before tax (-) Taxation Profit after tax	16,000 10,000	68,000 (30,000) 38,000 (26,000) 12,000 (3,000) 9,000	10,000 6,500	61,500 (38,000) 23,500 (16,500) 7,000 (1,750) 5,250
Balance Sheet Non-current Assets Current Assets Inventory Account receivables Cash Current Liabilities Creditors Bank overdraft Net current Assets Total Assets less Current Liabilities	18,000 28,000 - 46,000 26,000 5,000 31,000	10,600 15,000 25,600	8,000 10,000 2,000 20,000 6,000 - 6,000	8,300 14,000 22,300
Capital and Reserves Common Stock Retained earnings Long-term Loan Total Equity and Long Term Liabilities		10,000 5,600 15,600 10,000 25,600		12,000 10,300 22,300 - 22,300

Required:

As the companys financial advisor, you have been asked for your assessment of the two companies, from the particular view points of:

1. Liquidity;
2. Profitability;
3. Capital structure;
4. Efficiency.

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