BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2017 2016 Current assets $360 410 400 160 1,330 380 20 510 $2,370 $2,240 $800 390 1,050 $2,370 $2,240 $330 480 470 130 1,410 410 20 530 Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Investments Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common $830 490 1,050 Total liabilities and stockholders' equity BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2017 2016 Sales revenue $3,810 $3,470 Costs and expenses Total costs and expenses Income before income taxes Income tax expense Net income Cost of goods sold Selling & administrative expenses Interest expense 980 2,400 10 3,390 420 168 $ 252 900 2,330 20 3,250 220 $132 Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio (b) Inventory turnover. (Inventory on December 31, 2015, was $350.) (c) Profit margin (d) Return on assets. (Assets on December 31, 2015, were $1,910.) (e) Return on common stockholders' equity. (Equity on December 31, 2015, was $910.) (f) Debt to assets ratio (g) Times interest earned 2017 2016 Current ratio 1.70 :1 1.66 :1 Inventory turnover 2.25 2.5 Profit margin 6.6 % 3.8/ 96 6.4 % 13.51 % Return on assets 10.9 % 241 % 55.7 % Return on common stockholders' equity Debt to assets ratio 48.7 % Times interest earned 42 times 11 times