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.