Question
The financial statements for Armstrong and Blair companies for the current year are summarized below: Armstrong Company Blair Company Statement of Financial Position Cash
The financial statements for Armstrong and Blair companies for the current year are summarized below: Armstrong Company Blair Company Statement of Financial Position Cash $ 17,500 $ 11,000 Accounts receivable (net) 20,000 15,000 Inventory 50,000 20,000 Property, plant, and equipment (net) 70,000 200,000 Other non-current assets 42,500 154,000 Total assets $200,000 $400,000 Current liabilities $ 50,000 $ 25,000 Long-term debt (10%) 30,000 35,000 Share capital 75,000 250,000 Contributed surplus 15,000 55,000 Retained earnings 30,000 35,000 Total liabilities and shareholders' equity $200,000 $400,000 Statement of Earnings Sales revenue (1/3 on credit) $225,000 $405,000 Cost of sales (122,500) (202,500) Expenses (including interest and income tax) (80,000) (157,500) Net earnings $ 22,500 $ 45,000
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