Ch.13 Homework Question 3 of 3 View Policies < > Show Attempt History Current Attempt in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ch.13 Homework Question 3 of 3 View Policies < > Show Attempt History Current Attempt in Progress The following financial information is for Blossom Company. Blossom Company 12.86/30 == Balance Sheets December 31 Assets 2025 2024 Cash $69,000 $64,000 Debt investments (short-term) 50,000 39,000 Accounts receivable (net) 103,000 89,000 Inventory 229,000 162,000 SUPPORT Prepaid expenses 22,000 22,000 Land 129,000 129,000. Building and equipment (net) 259,000 183,000 Total assets $861,000 $688,000 Liabilities and Stockholders' Equity Notes payable (current) $169,000 $101,000 Accounts payable 64,000 50,000 Accrued liabilities 39,000 39,000 Bonds payable, due 2028 249,000 169,000 Common stock, $10 par 198,000 198,000 Retained earnings 142,000 131,000 Total liabilities and stockholders' equity $861,000 $688,000 Blossom Company Income Statements For the Years Ended December 31 2025 2024 Net sales $880,000 $780,000 Cost of goods sold 640.000 574,000 Gross profit 240,000 206,000 Operating expenses 190,000 159,000 Net income $50,000 $47,000 Additional information: 1. Inventory at the beginning of 2024 was $115,000. 2. Accounts receivable (net) at the beginning of 2024 were $88,000. 3. Total assets at the beginning of 2024 were $630,000. 4. No common stock transactions occurred during 2024 or 2025. 5. All sales were on credit. (a) Your answer is partially correct. Compute liquidity and profitability ratios, and indicate the percentage change in liquidity and profitability ratios of Blossom Company from 2024 to 2025. (Note: Not all profitability ratios can be computed, nor can cash-basis ratios be computed.) (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50. Round % change to O decimal places, for e.g. 1%. Round all other answers to 1 decimal place, e.g. 15.5. If % change is a decrease show the numbers as negative, e.g. -1% or (1%).) 2025 2024 % Change LIQUIDITY Current ratio 1.74 :1 1.98 :1 -12 % Accounts receivable 9.17 times 8.81 times 4 % turnover Inventory 3.27 times 4.14 times -21 % turnover 2025 PROFITABILITY Profit margin Asset turnover 5.7 % 2024 6.0 % 1.14 times 1.18 times Return on assets 5.8 % Earnings per share $ 2.53 (b) 4 eTextbook and Media Save for Later % Change 6.8 % -15 $ 2.37 Attempts: 4 of 5 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above. Ch.13 Homework Question 3 of 3 View Policies < > Show Attempt History Current Attempt in Progress The following financial information is for Blossom Company. Blossom Company 12.86/30 == Balance Sheets December 31 Assets 2025 2024 Cash $69,000 $64,000 Debt investments (short-term) 50,000 39,000 Accounts receivable (net) 103,000 89,000 Inventory 229,000 162,000 SUPPORT Prepaid expenses 22,000 22,000 Land 129,000 129,000. Building and equipment (net) 259,000 183,000 Total assets $861,000 $688,000 Liabilities and Stockholders' Equity Notes payable (current) $169,000 $101,000 Accounts payable 64,000 50,000 Accrued liabilities 39,000 39,000 Bonds payable, due 2028 249,000 169,000 Common stock, $10 par 198,000 198,000 Retained earnings 142,000 131,000 Total liabilities and stockholders' equity $861,000 $688,000 Blossom Company Income Statements For the Years Ended December 31 2025 2024 Net sales $880,000 $780,000 Cost of goods sold 640.000 574,000 Gross profit 240,000 206,000 Operating expenses 190,000 159,000 Net income $50,000 $47,000 Additional information: 1. Inventory at the beginning of 2024 was $115,000. 2. Accounts receivable (net) at the beginning of 2024 were $88,000. 3. Total assets at the beginning of 2024 were $630,000. 4. No common stock transactions occurred during 2024 or 2025. 5. All sales were on credit. (a) Your answer is partially correct. Compute liquidity and profitability ratios, and indicate the percentage change in liquidity and profitability ratios of Blossom Company from 2024 to 2025. (Note: Not all profitability ratios can be computed, nor can cash-basis ratios be computed.) (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50. Round % change to O decimal places, for e.g. 1%. Round all other answers to 1 decimal place, e.g. 15.5. If % change is a decrease show the numbers as negative, e.g. -1% or (1%).) 2025 2024 % Change LIQUIDITY Current ratio 1.74 :1 1.98 :1 -12 % Accounts receivable 9.17 times 8.81 times 4 % turnover Inventory 3.27 times 4.14 times -21 % turnover 2025 PROFITABILITY Profit margin Asset turnover 5.7 % 2024 6.0 % 1.14 times 1.18 times Return on assets 5.8 % Earnings per share $ 2.53 (b) 4 eTextbook and Media Save for Later % Change 6.8 % -15 $ 2.37 Attempts: 4 of 5 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Jones et al. (2023) examined the effect of distraction on the ability to complete a complex task. James et al. (2023) used different types of distractions and measured the number of 2 digit...
-
What is the variance of the following sample. 1, 27, 10, 11, 6, 23, 9, 7 your answer should be rounded to the nearest 100th decimal point
-
Direct materials used in production $ 1 1 0 , 0 0 0 Direct labour cost for the year $ 5 5 , 0 0 0 Work in process, beginning $ 2 2 , 0 0 0 Finished goods, beginning $ 4 5 , 0 0 0 Cost of goods...
-
what is resourced based view in public administration and why is it important?
-
Nello Company owed $23,400 overdue rent to its landlord, Bonview Inc. Because Nello is a desirable tenant, Bonview agreed to settle the overdue account for a $15,000 cash payment from Nello. Both...
-
Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 15,000 units. Materials and labor standards for performing the repairs are as...
-
Prepare a consolidated balance sheet from the following details as at 31 March 2006. During the year, Parent sold goods which had cost 1,100 to Subsidiary for 1,800. None of these goods had been sold...
-
The general ledger of Pack-N-Ship at June 30, 2012, the end of the companys fiscal year, includes the following account balances before adjusting entries. The additional data needed to develop the...
-
FiveTen Climbing Shoes has a profit of $19000 if it sells a pair of shoes for $ 26, has unit variable costs of $ 10 per pair, and total fixed costs of $ 58000. What is the contribution margin (in...
-
Write the sequence of control steps required for the single bus organization in each of the following instructions: a) Add the immediate number NUM to register R1. b) Add the contents of...
-
Economic concept known as opportunity costs. Please post a reflection on the opportunity costs you face. Remember to be more specific than just the "time" you have to give up. How do these costs...
-
Discuss how 3 ways the Covid pandemic and increase technology have changed the way supervision is done in the workplace and propose two strategies to ensure continued efficiency and productive.
-
1. Briefly explain the concept of stocks and their importance in financial markets. 2. Explain what common stock represents and its ownership features. 3. Illustrate the risk associated with common...
-
Rowan Company is considering two alternative investment projects. Each requires a $269,000 initial investment. Project A is expected to generate net cash flows of $79,000 per year over the next six...
-
2. Create a file named fname.txt with the following data. 7.1 8.2 9.3 10.4 11.5 12.6 Write a program that reads the file created above and stores the data into an the array named fname_coursework:....
-
According to Steve Reeves, arm size should equal _ _ _ _ _ _ _ _ _ _ _ _ _ _ of wrist size. 2 5 2 % 1 5 0 % 1 0 0 % 7 5 %
-
Does log 81 (2401) = log 3 (7)? Verify the claim algebraically.
-
What role does growth-need strength play in the job characteristics model?
-
Explain the difference between halo errors and recency errors in performance appraisal.
-
When is a team effective?
Study smarter with the SolutionInn App