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Proctoring Enabled: MGMT8500 - Midterm Exam - Friday i Saved Help Save & Exit Submit The financial statements for Armstrong and Blair companies for the current year are summarized below: Armstrong Blair Company Company Statement of Financial Position Cash $ 34,800 $ 27, 500 Accounts receivable (net ) 18 56,090 42, 500 Inventory 85, 006 44, 006 points Property, plant, and equipment (net) 187 ,500 160, 000 Other non-current assets 98, 006 342, 500 8 01:07:57 Total assets $ 561 , 300 $ 916, 500 Current liabilities $ 127, 000 $ 51,000 Long-term debt (10%) 79,000 74, 000 Share capital 215, 000 48, 000 Contributed surplus 41, 500 50,006 Retained earnings 98 , 800 93 , 500 Total liabilities and shareholders' equity $ 561, 300 $ 916, 500 Statement of Earnings Sales revenue (1/3 on credit ) $ 610,000 $ 980, 000 Cost of sales (305, 000) 441, 900) Expenses (including interest and income tax) (219, 600) (392, 000) Net earnings $ 85, 400 $ 147, 000 Selected data from the financial statements for the previous year follows: Armstrong Company Company Accounts receivable (net ) $ 36,000 $ 56,000 Inventory 76, 000 26, 000 Long-term debt 79 000 74.000 Other data : Share price year- end 18 15 Income tax rate 30% 30% Dividends declared and paid 46, 000 $310,000 4 Shares Outstanding 15, 000 50.000 The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have been in business approximately ten years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blair Company is more conservative, and as its president said, "We avoid what we consider to be undue risk." Neither company is publicly Mc Prey 1 of 8 Next > Gra - 1080