The 2014 financial statements for the Armstrong and Blair companies are summarized here:

The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have been in business approximately 10 years, and each has had steady growth. One-third of both companies' sales are on credit. Despite these similarities, the management of each has a different viewpoint in many respects. Blair is more conservative, and as its president said, "We avoid what we consider to be undue risk." Both companies use straight-line depreciation, but Blair estimates slightly shorter useful lives than Armstrong does. No shares were issued in 2014, and neither company is publicly held. Blair Company has an annual audit by a CA but Armstrong Company does not.
Required
1. Calculate the ratios in Exhibit 13.5 for which sufficient information is available. Round all calculations to two decimal places.
To calculate EPS, use the balance in Common Shares to determine the number of shares outstanding. Common Shares equals the par value per share times the number of shares.
2. A client of yours has decided to buy shares in one of the two companies. Based on the data given, prepare a comparative written evaluation of the ratio analyses (and any other available information) and conclude with your recommended choice.
Comment on how accounting differences affect your evaluations, if at all.

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Blair Armstrong Company Company Balance Sheet Cash $ 35,000 $ 22,000 Accounts Receivable, Net 40,000 100,000 180,000 30,000 40,000 300,000 Inventory Property and Equipment, Net Other Assets 45,000 408,000 $400,000 $800,000 Total Assets $ 50,000 Current Liabilities $100,000 370,000 Long-Term Debt 60,000 Total Liabilities 160,000 150,000 30,000 60,000 420,000 200,000 110,000 Common Sharo (por $10) Additional Paid-In Capital Retained Earnings Total Liabilities and Shareholders' Equity 70,000 $400,000 $800,000 Income Statement Sales Revenue (1/3 on credit) Cost of Goods Sold $810,000 $450,000 (245,000) (405,000) Expenses (including interest and income tax) (160,000) $ 45,000 (315,000) $ 90,000 Net Income Selected Data from 2013 Statements $ 20,000 92,000 Accounts Receivable, Net $ 38,000 45,000 Inventory Property and Equipment, Net Long-Term Debt Total Shareholders' Equity 180,000 60,000 231,000 300,000 70,000 440,000 Other Data Estimated value of each share at end of 2014 18 2$ 27