Problem 13-2A

The comparative statements of Blossom Company are presented here.

BLOSSOM COMPANY

Income Statements

For the Years Ended December 31

2017

2016

Net sales$1,899,640

$1,759,600

Cost of goods sold1,067,640

1,015,100

Gross profit832,000

744,500

Selling and administrative expenses509,100

488,100

Income from operations322,900

256,400

Other expenses and lossesInterest expense23,500

21,500

Income before income taxes299,400

234,900

Income tax expense93,500

74,500

Net income$205,900

$160,400

BLOSSOM COMPANY

Balance Sheets

December 31

Assets

2017

2016

Current assetsCash$60,100

$64,200

Debt investments (short-term)74,000

50,000

Accounts receivable126,900

111,900

Inventory127,500

117,000

Total current assets388,500

343,100

Plant assets (net)659,000

530,300

Total assets$1,047,500

$873,400

Liabilities and Stockholders' Equity

Current liabilitiesAccounts payable$169,100

$154,500

Income taxes payable45,000

43,500

Total current liabilities214,100

198,000

Bonds payable230,000

210,000

Total liabilities444,100

408,000

Stockholders' equityCommon stock ($5 par)290,000

300,000

Retained earnings313,400

165,400

Total stockholders' equity603,400

465,400

Total liabilities and stockholders' equity$1,047,500

$873,400

All sales were on account. Net cash provided by operating activities for 2017 was $234,000. Capital expenditures were $137,000, and cash dividends were $57,900.

Compute the following ratios for 2017.(Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)

(a)Earnings per share$

(b)Return on common stockholders' equity

%(c)Return on assets

%(d)Current ratio

:1(e)Accounts receivable turnover

times(f)Average collection period

days(g)Inventory turnover

times(h)Days in inventory

days(i)Times interest earned

times(j)Asset turnover

times(k)Debt to assets ratio

%(l)Free cash flow$