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 $ 35,000 40,000 100,000 180,000 45,000 $ 400,000 $ 100,000 60,000 160,000 150,000 30,000 60,000 $ 400,000 $ 22,000 30,000 40,000 300,000 408,000 $ 800,000 $ 50,000 370,000 420,000 200,000 110,000 70,000 $ 800,000 $ 450,000 245,000 160.000 $ 810,000 405,000 315.000 Check my work $ 450,000 245,000 160,000 $ 45,000 $ 810,000 405,000 315,000 $ 90,000 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 $ 18 $ 27 1 $ 20,000 92,000 180,000 6e,000 231,000 $ 38,000 45,000 300,000 70,000 440,000 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 avold 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 ratlos. 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.) Armstrong Company Blair Company % Ratio Tests of Profitability 1 Net Proft Margin 2 Gross Proht Percentage 3. Fixed Asset Turnover 4 Return on Equity 5. Earnings per Share 6. Price Earnings Ratio TE Prey 1 of 1 !!! Next % % % % % % 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