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 $ 35,200 24,000 32,000 38,000 20,000 312,000 38,000 120,000 150,000 87,000 Total assets $ 430,200 826,000 Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings $ 105,000 49,000 75,000 520,000 122,000 60,000 70,000 154,000 32,000 69,200 Total liabilities and shareholders' equity $ 430,200 826,000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) $ 470,000 $830,000 (415,000) (315,400) (258,500) (159,800) Net earnings 51,700 99,600 Selected data from the 2016 statements follows $22,000 90,000 70,000 $42,000 44,000 75,000 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 $ 15 0% 0% $38,000$170,000 50,000 15,000 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 per share per share times times Tests of liquidity: Cash ratio Current ratio Quick ratio Receivables turnover Inventory turnover times times times times Tests of solvency: Times-interest-earned ratio times times Debt-to-equity ratio Market tests Price/earnings ratio Dividend yield ratio