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The financial statements for Armstrong and Blair companles for the current year are summarized below. 5 Armstrong Company Blair Company 18 points Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets 8 $ 34,800 56,000 185, eee 187,5ee 98,eee $ 561,300 02:42:52 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 $ 27, see 42, see 44, eee 460, eee 342, see $ 916, see $ 51, eee 74, eee 548,000 150, eee 93,500 $ 916,500 $ 127,eee 79, eee 215,000 41,500 98,800 $ 561,300 $ 610, eee (305,000) (219,680) $ 85,400 $ 980,000 (441,000) (392,000) $ 147,000 Selected data from the financial statements for the previous year follows: Armstrong Company $ 36,eee 76,000 79,00 Blair Company $ 56, Bee 26, 80e 74,888 Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding $ 18 38% 45,888 15,98e $ 15 30% 5318,888 58, Bee $ ips%255 252F%252Flms.mhed MGMT8500 - Midterm Exam i Saved 5 The companles 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 sald, "We avold 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. 18 points Required: 1. Complete a schedule that reflects a ratio analysis of each company. Use ending balances If average balances are not avallable. (Round Intermediate calculations and final answers to 2 decimal places.) HINT. To calculate Current Ratlo, you will need to first calculate the total Current Assets. 8 0242-17 Ratio Armstrong Company Blair Company Profitability ratios. % Gross profit percentage Profit margin % % % per share Earnings per share Asset turnover ratios. per share Fixed Asset turnover times times Receivables turnover times times times times Inventory turnover Liquidity ratios. Current ratio Market tests: Price/earnings ratio Dividend yield ratio % %