The financial statements for Armstrong and Blair companies for the current year are summarized below. Statement of Financial Position Armstrong Company Blair Company Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets Total assets Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings Total liabilities and shareholders' equity Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) Net earnings $ 35,100 $ 23,000 45,100 105,100 145,100. 86,000 31,000 39,000 410,000 310,000 $ 416,400 $ 813,000 $ 102,500 $ 48,000 65,000 152,000 31,000 65,900 $ 416,400 $460,000 (253,000) (156,400) $ 50,600 72,500 510,000 121,000 61,500 $ 813,000 $ 820,000 (410,000) (311,600) $ 98,400 Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares outstanding $21,000 $41,000 91,000 46,000 65,000 72,500 $ 18 $ 30% 15 30% $37,000 15,000 $160,000 50,000 The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have been in business approximately ten 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.org.not available. (Round intermediate calculations and final answers to 2 decimal places.) HINT: To calculate Current Ratio, you will need to first calculate the total Current Assets Armstrong Company 20.32% Blair Company 42.14% 10.75% 50.00 % Ratio Profitability ratios Return on equity Return on assets 12.15% Gross profit percentage 45.00% Asset tumover ratios Fixed asset turnover 3.17 times 2.00 times Receivables tumnuar 7 times RR7 timas 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.) HINT: To calculate Current Ratio, you will need to first calculate the total Current Assets. Armstrong Company Ratio Blair Company Profitability ratios Return on equity 20.32 % 42.14% Return on assets 12.15% 10.75 % Gross profit percentage 45.00 ( % 50.00% Asset fumover ratios: Fixed asset turnover 3.17 times 2.00 times Receivables turnover 7.30 times 6.67 times Inventory turnover 2.40 times 10.51 times Liquidity ratios Current ratio 1.81 1.94 Debt-to-equity ratio 0.26 0.10 Market tests Price/earnings ratio 0.19 0.13 13