The financial statements for Armstrong and Blair companies are summarized here:

	Armstrong Company	Blair Company
Balance Sheet
Cash	$ 35,000	$ 22,000
Accounts Receivable, Net	40,000	30,000
Inventory	100,000	40,000
Equipment, Net	180,000	300,000
Other Assets	45,000	408,000
Total Assets	$ 400,000	$ 800,000
Current Liabilities	$ 100,000	$ 50,000
Notes Payable (long-term)	60,000	370,000
Total Liabilities	160,000	420,000
Common Stock (par $10)	150,000	200,000
Additional Paid-in Capital	30,000	110,000
Retained Earnings	60,000	70,000
Total Liabilities and Stockholders Equity	$ 400,000	$ 800,000
Income Statement
Sales Revenue	$ 450,000	$ 810,000
Cost of Goods Sold	245,000	405,000
Other Expenses	160,000	315,000
Net Income	$ 45,000	$ 90,000
Other Data
Estimated value of each share at end of year	$ 18	$ 27
Selected Data from Previous Year
Accounts Receivable, Net	$ 20,000	$ 38,000
Inventory	92,000	45,000
Equipment, Net	180,000	300,000
Notes Payable (long-term)	60,000	70,000
Total Stockholders Equity	231,000	440,000

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. Despite these similarities, the management of each has a different viewpoint in many respects. Blair is more conservative, and as its president said, We avoid what we consider to be undue risk. Both companies use straight-line depreciation, but Blair estimates slightly shorter useful lives than Armstrong. No shares were issued in the current year and neither company is publicly held. Blair Company has an annual audit by a CPA, but Armstrong Company does not. Assume the end-of-year total assets and net equipment balances approximate the years average and all sales are on account.

Required:

1. Calculate the following ratios. TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common Stock equals the par value per share times the number of shares. (Use 365 days in a year. Do not round intermediate calculations and round your final answers to 2 decimal places.

   The financial statements for Armstrong and Blair companies are summarized here:

   	Armstrong Company	Blair Company
   Balance Sheet
   Cash	$ 35,000	$ 22,000
   Accounts Receivable, Net	40,000	30,000
   Inventory	100,000	40,000
   Equipment, Net	180,000	300,000
   Other Assets	45,000	408,000
   Total Assets	$ 400,000	$ 800,000
   Current Liabilities	$ 100,000	$ 50,000
   Notes Payable (long-term)	60,000	370,000
   Total Liabilities	160,000	420,000
   Common Stock (par $10)	150,000	200,000
   Additional Paid-in Capital	30,000	110,000
   Retained Earnings	60,000	70,000
   Total Liabilities and Stockholders Equity	$ 400,000	$ 800,000
   Income Statement
   Sales Revenue	$ 450,000	$ 810,000
   Cost of Goods Sold	245,000	405,000
   Other Expenses	160,000	315,000
   Net Income	$ 45,000	$ 90,000
   Other Data
   Estimated value of each share at end of year	$ 18	$ 27
   Selected Data from Previous Year
   Accounts Receivable, Net	$ 20,000	$ 38,000
   Inventory	92,000	45,000
   Equipment, Net	180,000	300,000
   Notes Payable (long-term)	60,000	70,000
   Total Stockholders Equity	231,000	440,000

   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. Despite these similarities, the management of each has a different viewpoint in many respects. Blair is more conservative, and as its president said, We avoid what we consider to be undue risk. Both companies use straight-line depreciation, but Blair estimates slightly shorter useful lives than Armstrong. No shares were issued in the current year and neither company is publicly held. Blair Company has an annual audit by a CPA, but Armstrong Company does not. Assume the end-of-year total assets and net equipment balances approximate the years average and all sales are on account.

   Required:

2. Calculate the following ratios. TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common Stock equals the par value per share times the number of shares. (Use 365 days in a year. Do not round intermediate calculations and round your final answers to 2 decimal places.)