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The condensed financial statements of Blossom Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) BLOSSOM COMPANY Balance Sheets December
The condensed financial statements of Blossom Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) BLOSSOM COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 640 570 Inventory 520 450 Prepaid expenses 120 160 Total current assets 1.610 1.540 Investments 180 180 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,740 $2.610 Current liabilities $1,070 $960 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,740 $2,610 Current liabilities $1,070 $960 Long-term liabilities 470 440 Stockholders' equity-common 1,200 1,210 Total liabilities and stockholders' equity $2,740 $2,610 BLOSSOM COMPANY Income Statements For the Year Ended December 31 2022 2021 $3,860 $3,520 Sales revenue Costs and expenses Cost of goods sold 1,125 1,060 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,550 3,410 Income before income taxes 310 110 Income tax expense 93 33 Net income $217 $77 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/20, was $350.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/20, were $2,080.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $960.) (f) Debt to assets ratio. (g) Times interest earned. Current ratio. Inventory turnover. 2022 :1 2021 :1 % 26 Profit margin. 96 Return on assets. Return on common stockholders' equity. % Debt to assets ratio. % Times interest earned. times % times
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