The 2017 financial statements for Armstrong and Blair companies are summarized below: Armstrong Company Blair Company Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets $ 35,800 32,000 210,000 172,500 96,000 $ 33,000 45,000 36,500 475,000 330,000 Total assets $ 546,300 $ 919,500 Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings $ 127,500 91,500 182,500 52,000 92,800 $ 42,500 84.000 575,000 131,000 87,000 Total liabilities and shareholders' equity $ 546,300 $ 919,500 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) $ 560,000 (308,000) (190,400) $ 920,000 (460,000) (349,600) Net earnings $ 61,600 $ 110,400 Selected data from the 2016 statements follows: $31,000 81,000 91,500 $ 51,000 26,000 84,000 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% $47,000 15,000 $ 15 30% $260,000 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.) Ratio Armstrong Company Blair Company % % % 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 per share % per share % times times Current ratio times times times times Quick ratio Receivables turnover Inventory turnover Tests of solvency: Times-interest-earned ratio Debt-to-equity ratio Market tests: Pricelearnings ratio Dividend yield ratio times times % %