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The condensed financial statements of Blossom Company for the years 2019 and 2020 are presented below. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2020

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The condensed financial statements of Blossom Company for the years 2019 and 2020 are presented below. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2020 2019 Current assets Cash and cash equivalents Accounts receivable (net) Triventory Prepaid expenses Total current assets Property, plant and equipment (net) Investments Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $330 510 560 130 1.530 410 50 530 $2.520 $860 580 1.080 $2.520 5360 440 490 160 1.450 380 50 510 52.390 $830 480 1,080 $2.390 BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2020 2019 Sales revenue $3.900 $3,560 Costs and expenses Cost of goods sold 1.010 930 Selling & administrative expenses 2.400 2.330 Interest expense 10 20 Total costs and expenses 3,420 3.280 Income before income taxes 480 280 Income tax expense 192 112 $288 Net Income $ 168 Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal place, es. 18 or 126%) ta (b Id Id Current ratio Inventory turnover. (Inventory on December 31, 2018, was $360.) Profit margin Return on assets. (Assets on December 31, 2018, were $2.360) Return on common stockholders'equity. (Equity on December 31, 2018, was $910) Debt to assets ratio Times interest earned (8) BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2020 2019 Sales revenue $3.900 $3.560 Costs and expenses Cost of goods sold 1.010 930 Selling & administrative expenses 2.400 2,330 Interest expense 10 20 Total costs and expenses 3,420 3,280 Income before income taxes 480 280 Income tax expense 192 112 Net income $ 288 $ 168 (6) Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal place, eg. 18 or 12.6%) (a) Current ratio. Inventory turnover. (Inventory on December 31, 2018, was $360.) (c) Profit margin (d) Return on assets. (Assets on December 31, 2018, were $2,360) (e) Return on common stockholders equity. (Equity on December 31, 2018, was 5910.) (1) Debt to assets ratio. Times interest earned 2020 2019 (a) Current ratio 177 -1 1.74 (b) Inventory turnover 1.92 1.77 75 se 49 (c) Profit margin (d) Return on assets (e) Return on common stockholders' equity. 117 R 7.0 266 % 15.5 (0) Debt to assets ratio 6700 % 70.7 (8) Times interest earned. 48 times 14

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