Proctoring Enabled: MGM18500 Midterm Exam Snare price year-end Income tax rate Dividends declared and paid Shares Outstanding 43,000 15,000 $270, 50,000 2 ols 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 overage balonces are not avnilable. (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. Ratia Artistang compam Bar Company Profitability ratios Gross profit percentage % Profit margin % Earnings per share per share per share Assel turnover ratios Foxed Asset turnover times times Receivables turnover times Inventory turnover times Liquidity ratios Current ratio Market tests Pricelearnings ratio Dividend yield ratio times times The financial statements for Armstrong and Blair companies for the current year are summarized below: 2 Arestrang Copy Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets Total assets Current abilities Long-term debt (103) 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 $ 35,600 34,000 190.000 175,000 92,000 $ 531,600 $ 130,000 39,000 175.000 42,000 95,600 $ 531,600 $ 14,000 44,500 30,000 450,000 312,500 $299,000 $57.000 32,00 550.000 132,000 78,000 $ 899,000 $570,000 (313,500) (193,500) $ 62,700 $930,000 (465,000) (353,400) $ 111,600 Selected data from the financial statements for the previous year follows: Armstrong Company 32,000 80,000 89,000 Blair Company $ 52,000 24,000 82,000 Accounts receivable (net) Inventory Long-tern debt Other data: Share price year end Income tax rate Dividends declared and paid Shares Outstanding 18 30% $ 48,000 15,000 $ 15 30% $270,000 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