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 $ 36,000 30,000 205,000 170,000 95,000 $ 32,000 40,000 35,000 500,000 328,000 Total assets $ 536,000 $ 935,000 Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings $ 125,000 94,000 180,000 40,000 97,000 $ 44,000 86,000 600,000 130,000 75,000 Total liabilities and shareholders' equity $ 536,000 $ 935,000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) $ 550,000 (302,500) (187,000) $ 910,000 (455,000) (345,800) Net earnings $ 60,500 $ 109,200 Selected data from the 2016 statements follows: $30,000 82,000 94,000 $ 50,000 28,000 86,000 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% $46,000 15,000 $ 15 30% $250,000 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 % % % per share per share % % times times Financial leverage percentage Earnings per share Profit margin Fixed asset turnover Tests of liquidity Cash ratio Current ratio Quick ratio Receivables tumover Inventory tumover Tests of solvency Times-interest-earned ratio Debt-to-equity ratio Market tests Pricelearnings ratio Dividend yield ratio times times times times times times % %