The financial statements for Armstrong and Blair companies for the current year are summarized below Armstrong Company Blair Company 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 $ 35,400 36,000 140,000 160.000 39,000 $460,400 $ 110,000 30,000 155,000 34,000 75.400 $460,400 $ 26,000 34.000 36,000 440,000 316,080 $ 852,000 $ 47,000 80,000 540.000 124,000 61,000 $ 852,000 5.490,000 (269.500 166.600 $ 53,900 $ 350,000 (425,000 323,000 $102.000 Selected data from the financial statements for the previous year follows: Armstrong Company 24.000 000 Blodt Company $14.000 Net earnings $53.900 $ 102,000 Selected data from the financial statements for the previous year follows: Armstrong Company $ 24,000 38.000 BO,000 Blair Company $ 44,000 40.000 80. Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding 18 30% 40,000 15,000 $ 15 30% $190,000 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. Nerther 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 balonces if average balances are not available (Round Intermediate calculations and final answers to 2 decimal places.) HINT Calculate Current to you will need to installate the total current Assets per share per share Required: 1. Complete a schedule that reflects a ratio analysis of each company. Use ending balances it overage balances are not be (Round intermediate calculations and final answers to 2 decimal places.) HINT Yo calculate Current Ratio, you will need to first calculate the total Current Assets Ratio Astrong Company Blair Company Profitability rabos Gross profit percentage % Profit margin % Earnings per share Asset turnover ratios Fixed Asset tumover times times Receivables turnover times times Inventory turnover times Liquidity ratios Current ratio Market tests Price/earings ratio Dividend yold ratio
