18 8 Sozorn The financial statements for Armstrong and Blair companies for the current year are summarized below: Dlair Company statement of Financial Position Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets Total assets Current liabilities Long term debt (10%) Share capital Contributed surplus Retained earnings Total liabilities and shareholders' equity Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) Net earnings Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding $ Selected data from the financial statements for the previous year follows: Blair Company $ 47,000 $ $ Armstrong Company 27,000 85,000 95,000 18 30% 43,000 15,000 Arwstrong $ $ 35,700 33,000 175,000 145,000 92,000 $ 480,700 $ 117,500 95,000 164,000 37,000 67,200 $ 480,700 $ 520,000 (286,000) (176,800) $ 57,200 34,000 87,500 15 30% $220,000 50,000 $ 29,000 37,000 33,000 470,000 322,000 $ 891,000 $ 46,000 87,500 570,000 127,000 60,500 $ 891,000 $ 880,000 (440,000) (334,400) $ 105,600 The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have been in business cinta ports Plair