The financial statements for Armstrong and Blair companies aresummarized here:

	Armstrong Company				Blair Company
Balance Sheet
Cash	$	30,000			$	17,000
Accounts Receivable, Net		35,000				25,000
Inventory		90,000				30,000
Equipment, Net		170,000				290,000
Other Assets		40,000				403,000
Total Assets	$	365,000			$	765,000
Current Liabilities	$	90,000			$	40,000
Note Payable (long-term)		50,000				360,000
Total Liabilities		140,000				400,000
Common Stock (par $10)		145,000				195,000
Additional Paid-in Capital		25,000				105,000
Retained Earnings		55,000				65,000
Total Liabilities and Stockholders’ Equity	$	365,000			$	765,000
Income Statement
Sales Revenue	$	435,000			$	795,000
Cost of Goods Sold		240,000				400,000
Other Expenses		155,000				310,000
Net Income	$	40,000			$	85,000
Other Data
Estimated value of each share at end of year	$	18			$	27
Selected Data from Previous Year
Accounts Receivable, Net	$	15,000			$	33,000
Inventory		87,000				40,000
Equipment, Net		170,000				290,000
Note Payable (long-term)		50,000				65,000
Total Stockholders’ Equity		226,000				435,000

The companies are in the same line of business and are directcompetitors in a large metropolitan area. Both have been inbusiness approximately 10 years and each has had steady growth.Despite these similarities, the management of each has a differentviewpoint in many respects. Blair is more conservative, and as itspresident said, “We avoid what we consider to be undue risk.” Bothcompanies use straight-line depreciation, but Blair estimatesslightly shorter useful lives than Armstrong. No shares were issuedin the current year and neither company is publicly held. BlairCompany has an annual audit by a CPA, but Armstrong Company doesnot. Assume the end-of-year total assets and net equipment balancesapproximate the year’s average and all sales are on account.

Required:

1. Calculate the following ratios. TIP: To calculate EPS, use thebalance in Common Stock to determine the number of sharesoutstanding. Common Stock equals the par value per share times thenumber of shares. (Use 365 days in a year. Do not roundintermediate calculations and round your final answers to 2 decimalplaces.)

	Ratio Armstrong Company Blair Company Tests of Profitability: 1. Net Profit Margin % % 2. Gross Profit Percentage % % 3. Fixed Asset Turnover 4. Return on Equity % % 5. Earnings per Share 6. Price/Earnings Ratio Tests of Liquidity: 7. Receivables Turnover Days to Collect 8. Inventory Turnover Days to Sell 9. Current Ratio Tests of Solvency: 10. Debt-to-Assets