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

	Armstrong Company			Blair Company
Balance Sheet
Cash	$	27,000		$	14,000
Accounts Receivable, Net		32,000			22,000
Inventory		84,000			24,000
Equipment, Net		164,000			284,000
Other Assets		37,000			400,000
Total Assets	$	344,000		$	744,000
Current Liabilities	$	84,000		$	34,000
Note Payable (long-term)		44,000			354,000
Total Liabilities		128,000			388,000
Common Stock (par $10)		142,000			192,000
Additional Paid-in Capital		22,000			102,000
Retained Earnings		52,000			62,000
Total Liabilities and Stockholders Equity	$	344,000		$	744,000
Income Statement
Sales Revenue	$	426,000		$	786,000
Cost of Goods Sold		237,000			397,000
Other Expenses		152,000			307,000
Net Income	$	37,000		$	82,000
Other Data
Estimated value of each share at end of year	$	18		$	27
Selected Data from Previous Year
Accounts Receivable, Net	$	12,000		$	30,000
Inventory		84,000			37,000
Equipment, Net		164,000			284,000
Note Payable (long-term)		44,000			62,000
Total Stockholders Equity		223,000			432,000

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. Round your intermediate calculations and your final answers to 2 decimal places.)

Ratio		Armstrong Company		Blair Company
Tests of Profitability:
1.	Net Profit Margin	8.69	%	10.43	%
2.	Gross Profit Percentage		%		%
3.	Fixed Asset Turnover
4.	Return on Equity		%		%
5.	Earnings per Share
6.	Price/Earnings Ratio
Tests of Liquidity:
7.	Receivables Turnover
	Days to Collect
8.	Inventory Turnover
	Days to Sell
9.	Current Ratio
Tests of Solvency:
10.	Debt-to-Assets