Question
The financial statements for Armstrong and Blair companies for the current year are summarized below: Statement of Financial Position Cash Accounts receivable (net) Inventory
The financial statements for Armstrong and Blair companies for the current year are summarized below: Statement of Financial Position 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 Armstrong Company Blair Company 35,500 $ 27,000 35,000 35,000 155,000 35,000 155,000 90,000 450,000 318,000 $ 470,500 $ 865,000 $ 112,500 85,000 160,000 35,000 $ 48,000 82,500 550,000 125,000 78,000 59,500 $ 470,500 $ 865,000 $ 500,000 $ 860,000 (275,000) (170,000) (430,000) (326,800) $ 55,000 $ 103,200
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