The financial statements for Armstrong and Blair companies are summarized here: Armstrong Company Blair Company Balance Sheet Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets Total Assets Current Liabilities Notes Payable (long-term) Total Liabilities Common Stock (par $10) Additional Paid-in Capital Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Other Data Estimated value of each share at end of year Selected Data from Previous Year Accounts Receivable, Net Inventory Equipment, Net Notes Payable (long-term) Total Stockholders' Equity $ 42,000 47,000 114,000 194,000 52,000 $ 449,000 $ 114,000 74,000 188,000 157,000 37,000 67,000 $ 449,000 $ 29,000 37,000 54,000 314,000 415,000 $ 849,000 $ 64,000 384,000 448,000 207,000 117,000 77,000 $ 849,000 $ 471,000 252,000 167,000 $ 52,000 $ 831,000 412,000 322,000 $ 97,000 $ 19 $ 26 $ 27,000 99,000 194,000 74,000 238,000 $ 45,000 52,000 314,000 77,000 447,000 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 year's 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.) Ratio Armstrong Company Blair Company 11.04% 46.50% 2.43 11.67% 50.42% 2.65 % Tests of Profitability: 1. Net Profit Margin 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 7. Days to Collect 8. Inventory Turnover 8. Days to Sell 9. Current Ratio Tests of Solvency: 10. Debt-to-Assets