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i need an answer asap, thank you! he 2017 financial statements for Armstrong and Blair companies are summarized elow: Armstrong Company Blair Company Statement of

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he 2017 financial statements for Armstrong and Blair companies are summarized elow: Armstrong Company Blair Company Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets $ 35,500 35,000 155,000 155,000 90,000 $ 27,000 35,000 35,000 450,000 318,000 Total assets $ 470,500 $ 865,000 Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings $ 112,500 85,000 160,000 35,000 78,000 $ 48,000 82,500 550,000 125,000 59,500 Total liabilities and shareholders' equity $ 470,500 $ 865,000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) $500,000 (275,000) (170,000) $ 860,000 (430,000) (326,800) Net earnings $ 55,000 $ 103,200 Selected data from the 2016 statements follows: $25,000 87,000 85,000 $ 45,000 38,000 82,500 Accounts receivable (net) Inventory Long-term debt Other data: Share price at end of 2017 Income tax rate Dividends declared and paid in 2017 Number of common shares during 2017 $ 18 30% $ 41,000 15,000 $ 15 30% $200,000 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 10 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 held. Armstrong Company has an annual audit by an independent auditor, but Blair Company does not Required: 1. Complete a schedule that reflects a ratio analysis of each company. Use ending balances if average balances are not available. (Round intermediate calculations and final answers to 2 decimal places.) consider to be undue risk." Neither company is publicly held. Armstrong Company ha an annual audit by an independent auditor, but Blair Company does not. Required: 1. Complete a schedule that reflects a ratio analysis of each company. Use ending balances if average balances are not available. (Round intermediate calculations and final answers to 2 decimal places.) Armstrong Company Blair Company % % % % % % per share 11.00% times per share 12.00% times Ratio Tests of profitability: Return on equity Return on assets Financial leverage percentage Earnings per share Profit margin Fixed asset turnover Tests of liquidity: Cash ratio Current ratio Quick ratio Receivables turnover Inventory turnover Tests of solvency Times-interest-eared ratio Debt-to-equity ratio Market tests: Pricelearnings ratio Dividend yield ratio 2.00 2.02 24.57 times 14.29 times 1.77 times 12.29 times times times % %

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