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Find for Armstrong Company and Blair Company : Liquidity Ratio (a) Current Ratio Market tests (b) Price/earnings ratio (c) Divident yield ratio (%)

Find for Armstrong Company and Blair Company : Liquidity Ratio (a) Current Ratio Market tests (b) Price/earnings ratio (c) Divident yield ratio (%)

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
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Find for Armstrong Company and Blair Company :

Liquidity Ratio

(a) Current Ratio

Market tests

(b) Price/earnings ratio

(c) Divident yield ratio (%)

Blair Armstrong Company Company Statement of Financial Position $ 35,000 54,000 170,000 185,000 85,500 $ 529,500 30,000 43,000 42,500 420,000 340,000 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non- current assets $ 875,500 $ 52,500 76,000 554,000 132,000 61,000 Total assets $134,000 81,500 230,000 42,000 42,000 Current liabilities Long-térm debt (10%) Share capital Contributed surplus Retained earnings $ 529,500 $ 875,500 Total liabilities and shareholders' equity Statement of Earnings Sales revenue (1/3 on credit) Cost of sales $ 600,000 (300,000) (216,000) $ 960,000 (432,000) (384,000) $ 144,000 Expenses (including interest and income tax) 84,000 Net earnings
Transcribed Image Text:Blair Armstrong Company Company Statement of Financial Position $ 35,000 54,000 170,000 185,000 85,500 $ 529,500 30,000 43,000 42,500 420,000 340,000 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non- current assets $ 875,500 $ 52,500 76,000 554,000 132,000 61,000 Total assets $134,000 81,500 230,000 42,000 42,000 Current liabilities Long-térm debt (10%) Share capital Contributed surplus Retained earnings $ 529,500 $ 875,500 Total liabilities and shareholders' equity Statement of Earnings Sales revenue (1/3 on credit) Cost of sales $ 600,000 (300,000) (216,000) $ 960,000 (432,000) (384,000) $ 144,000 Expenses (including interest and income tax) 84,000 Net earnings
Selected data from the financial statements for the previous year follows Armstrong Company 35,000 77,000 81,500 Blair Accounts receivable (net) Inventory Long-term debt Other data: Company $ 55,000 23,000 76,000 Share price year-end 18 15 Income tax rate 30% 30% Dividends declared and paid Shares Outstanding $ 300,000 50,000 $ 48,000 15,000 %24 %24
Transcribed Image Text:Selected data from the financial statements for the previous year follows Armstrong Company 35,000 77,000 81,500 Blair Accounts receivable (net) Inventory Long-term debt Other data: Company $ 55,000 23,000 76,000 Share price year-end 18 15 Income tax rate 30% 30% Dividends declared and paid Shares Outstanding $ 300,000 50,000 $ 48,000 15,000 %24 %24
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