roctoring Enabled: MH 13 8 00:33:15 eBook The financial statements for Armstrong and Blair companies for the current year are summarized below: Blair Company 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 Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding $ Armstrong Company $ $ 35,200 38,000 120,000 150,000 87,000 $430,200 $ 105,000 70,000 154,000 32,000 69,200 $430,200 Selected data from the financial statements for the previous year follows: Blair Company Armstrong Company 22,000 90,000 70,000 $ 42,000 44,000 75,000 18 30% 38,000 15,000 $ 470,000 (258,500) (159,800) $ 51,700 $ 24,000 32,000 38,000 420,000 312,000 $ 826,000 $ $ 49,000 75,000 520,000 122,000 60,000 $ 826,000 15 30% $170,000 50,000 $830,000 (415,000) (315,400) $ 99,600 The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have approximately ten years, and each has had steady growth. The management of each has a different viewpoint in r Company is more conservative, and as its president said, "We avoid what we consider to be undue risk." Neither c

Dlair companies for the current year are summarized below: approximately ten years, and each has had steady growth. The management of each has a ditan area. Both have Company is more conservative, and as its president sald. "We avoid what we consider to be different viewpoint in Dlair companies for the current year are summarized below: approximately ten years, and each has had steady growth. The management of each has a ditan area. Both have Company is more conservative, and as its president sald. "We avoid what we consider to be different viewpoint in