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The 2017 financial statements for Armstrong and Blair companies 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 5 34.400 80,000 215,000 192.500 94.000 5 22,500 41,500 45.500 475,000 347,500 Total assets 5 595.900 S 932.000 Current liabilities Long-term debt (10%) Share capital Contributed surplus Retained earnings 5 146,000 74,000 290,000 40,500 45.400 5 48,000 71,000 585.000 147.000 81.000 Total liabilities and shareholders' equity 5 595.900 S 932.000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) 5 630,000 (315,000) (226,800) 5 970,000 (436,500) (388.000) Net earnings 5 88,200 5 145.500 Selected data from the 2016 statements follows 536,000 74,000 74,000 5 55,000 32,000 71,000 Accounts receivable (net) Long-term debt Other data Share price at end of 2017 Income tax rate Dividends declared and paid in 2017 Number of common shares during 2017 5 18 5 15 30% 30% 542,000 15.000 5300,000 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 10 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

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