Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow 2015 Blossom Medical
Blossom Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow 2015 Blossom Medical Comparative Balance Sheet As of December 31 2016 Assets Current assets Cash $306,000 Accounts receivable, net 1.065,400 Inventory 721,000 Other current assets 311.000 Total current sets 27403.400 Property, plant, & equipment, net 9.100.385 Total assets $11.512,785 $417,500 776.450 681,000 247,050 2.122.000 8.377,195 510,499,195 Liabilities and Stockholders' Equity Long-term debe Total Babies Preferred stock 55 par value Common stock, 30.25 par value Retained earnings Total stockholders' equity 53.110,000 3.792.650 6.821 650 50 500 158,000 4,473.635 4,601,135 $2.845,100 3.992.600 6.738.700 59 500 103.000 3.597.095 2.750.495 Total liabilities and stockholders equity 911,512.785 $10.499,195 Blossom Medical Comparative Income Statement and statement of Retained Earnings For the Year 2016 Sales revenue (all on account) $10,400,000 59,613,900 Cost of goods sold 5.250.000 5.298,750 Gross profit 5.150.000 4.315.150 Operating expenses 2.840,300 2694,200 Net operating income 2.309,700 1.680 950 351.000 303,600 Net Income before taxes 1.926.700 Income taxes (30%) 576.610 411.705 ret income $1.350.090 3960.645 Dividend paid Preferred dividends 29.550 29.550 Common dividends 444.000 471.000 Total dividends paid 473.550 500.550 et income retained 876.540 450,005 Retained earnings, beginning of year 3.597,095 3.137,000 Retained earnings, and of year $4,473,625 $2.507,005 1.372.50 Calculate the following profitability ratios for 2016. (Round answers to 1 decimal place, e.g. 50.19.) a. Gross margin percentage b. Return on assets EH .25 & Return on common stockholders
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started