Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls share me answers not equations The financial statements for Armstrong and Blair companies for the current year are summarized below: 2 3:57 Statement of

image text in transcribed

image text in transcribed

pls share me answers not equations

The financial statements for Armstrong and Blair companies for the current year are summarized below: 2 3:57 Statement of Financial Position Cash 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 35,900 31,000 195,000 162,000 94, een $ 517,900 $ 122,500 96,500 168,000 39,900 91,900 $ 517,900 $ 31,800 39,000 33,500 490,000 326,000 $ 919,500 $ 48,000 88,000 590,000 129,000 64,90 $ 919,500 $ 540,000 (297,800) (183,600) $ 59,400 $ 900,000 (450,000) (342,000) $ 108,000 Selected data from the financial statements for the previous year follows: Armstrong Company $ 29,000 83,000 96,500 Blair Company $ 49,000 30,000 88,000 Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding $ 18 30% 45,000 15,000 $ 15 30% $240,000 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 held. Armstrong Company has an annual audit by an independent auditor, but Blair Company does not 18 points 8 03-12-15 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.) HINTTo calculate Current Ratio, you will need to first calculate the total Current Assets. % % Profitability ratios. Gross profit percentage Profit margin Eamings per share Asset turnover ratios: % % per share per sha Fixed Asset tumover times times Receivables turnover times times times times Inventory turnover Liquidity ratios Current ratio Market tests: Price/earnings ratio Dividend yield ratio % % a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Training And Development Audit

Authors: Rosemary Harrison

2nd Edition

0955970725, 978-0955970726

More Books

Students also viewed these Accounting questions