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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) 480 410 Inventory 470 400 Prepaid expenses 120 160 Total current assets 1,400 1,330 Investments 20 20 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,370 $2,240 Current liabilities $910 $800 Long-term liabilities 420 390 Stockholders' equity-common 1,040 1,050 Total liabilities and stockholders' equity $2,370 $2,240 BLOSSOM COMPANY Income Statements For the Year Ended December 31 Sales revenue 2022 2021 $3,810 $3,470 Costs and expenses Cost of goods sold 965 900 Selling & administrative expenses 2,400 2.330 Interest expense 25 20 Total costs and expenses 3,390 3,250 Income before income taxes 420 220 Income tax expense Net income 126 66 $294 $154 -/10 E II! Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decima 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 $1,910.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $910.) (f) Debt to assets ratio. (g) Times interest earned. 2022 2021 -/10 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 $1,910.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $ (f) Debt to assets ratio. (g) Times interest earned. nt ratio. ory turnover. margin. 2022 :1 2021 :1 % % 1 on assets. non common stockholders' equity. % % o assets ratio. % % interest earned. Save for Later times times
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