The financial statements for Armstrong and Blair companies for the current year are summarized below:

	Armstrong Company				Blair Company
Statement of Financial Position
Cash	$	36,000			$	32,000
Accounts receivable (net)		30,000				40,000
Inventory		205,000				35,000
Property, plant, and equipment (net)		170,000				500,000
Other non-current assets		95,000				328,000
Total assets	$	536,000			$	935,000
Current liabilities	$	125,000			$	44,000
Long-term debt (10%)		94,000				86,000
Share capital		180,000				600,000
Contributed surplus		40,000				130,000
Retained earnings		97,000				75,000
Total liabilities and shareholders equity	$	536,000			$	935,000
Statement of Earnings
Sales revenue (1/3 on credit)	$	550,000			$	910,000
Cost of sales		(302,500	)			(455,000	)
Expenses (including interest and income tax)		(187,000	)			(345,800	)
Net earnings	$	60,500			$	109,200

Selected data from the financial statements for the previous year follows:

		Armstrong Company				Blair Company
Accounts receivable (net)	$	30,000			$	50,000
Inventory		82,000				28,000
Long-term debt		94,000				86,000
Other data:
Share price year-end	$	18			$	15
Income tax rate		30	%			30	%
Dividends declared and paid	$	46,000			$	250,000
Shares Outstanding		15,000				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 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.