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Blossom Medical manufactures hospital beds and other institutional furniture. The companys comparative balance sheet and income statement for 2019 and 2020 follow. Blossom Medical Comparative

Blossom Medical manufactures hospital beds and other institutional furniture. The companys comparative balance sheet and income statement for 2019 and 2020 follow.

Blossom Medical Comparative Balance Sheet As of December 31

2020

2019

Assets

Current assets

Cash

$366,000 $417,500

Accounts receivable, net

1,038,000 776,400

Inventory

733,000 681,000

Other current assets

381,400 247,000

Total current assets

2,518,400 2,121,900

Property, plant, & equipment, net

8,710,515 8,440,030

Total assets

$11,228,915 $10,561,930
Liabilities and Stockholders Equity

Current liabilities

$3,169,000 $2,846,000

Long-term debt

3,702,600 3,892,600

Total liabilities

6,871,600 6,738,600

Preferred stock, $5 par value

58,900 59,000

Common stock, $0.25 par value

104,700 103,800

Retained earnings

4,193,715 3,660,530

Total stockholders equity

4,357,315 3,823,330

Total liabilities and stockholders equity

$11,228,915 $10,561,930

Blossom Medical Comparative Income Statement and Statement of Retained Earnings For the Year

2020

2019

Sales revenue (all on account)

$10,177,300 $9,614,000

Cost of goods sold

5,613,550 5,298,750

Gross profit

4,563,750 4,315,250

Operating expenses

2,840,300 2,634,150

Net operating income

1,723,450 1,681,100

Interest expense

300,400 308,700

Net income before taxes

1,423,050 1,372,400

Income taxes (30%)

426,915 411,720

Net income

$996,135 $960,680

Dividends paid

Preferred dividends

29,500 29,450

Common dividends

433,450 413,000

Total dividends paid

462,950 442,450

Net income retained

533,185 518,230

Retained earnings, beginning of year

3,660,530 3,142,300

Retained earnings, end of year

$4,193,715 $3,660,530

Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.)

a.

Debt ratio

enter percentages %

b.

Debt-to-equity ratio

enter a ratio

c.

Times interest earned ratio

enter a number of times times

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