The condensed financial statements of Blossom Company for the years 2021 and 2022 are as follows. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Current assets Cash and cash equivalents $348 $321 Accounts receivable (net) 510 440 Inventory 560 490 Prepaid expenses 130 160 Total current assets 1.548 1,411 Investments 50 50 Property, plant, and equipment (net) 392 380 Intangibles and other assets 530 549 Total assets $ 2,520 $ 2,390 BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2022 2021 $3,900 $3,560 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses 1,008 935 2.400 2.330 Interest expense 10 20 Total costs and expenses 3,418 3.285 Income before income taxes 482 275 Income tax expense 193 110 Net income $ 289 $ 165 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal place, eg. 1.8 or 126%) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2020, was $360.) C (d) Profit margin Return on assets. (Assets on December 31, 2020, were $ 2,360.) Return on common stockholders' equity. (Equity on December 31, 2020, was $ 910.) Debt to assets ratio (e) (1 (8) Times interest earned 2022 2021 Current ratio 21 :1 Inventory turnover Profit margin % % Return on assets 96 % Return on common stockholders equity. % 96 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % % Return on assets % Se Return on common stockholders' equity % % Debt to assets ratio % % Times interest earned times times eTextbook and Media Save for Later Attempts: 0 of 3 used Submit The condensed financial statements of Blossom Company for the years 2021 and 2022 are as follows. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Current assets Cash and cash equivalents $348 $321 Accounts receivable (net) 510 440 Inventory 560 490 Prepaid expenses 130 160 Total current assets 1.548 1,411 Investments 50 50 Property, plant, and equipment (net) 392 380 Intangibles and other assets 530 549 Total assets $ 2,520 $ 2,390 BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2022 2021 $3,900 $3,560 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses 1,008 935 2.400 2.330 Interest expense 10 20 Total costs and expenses 3,418 3.285 Income before income taxes 482 275 Income tax expense 193 110 Net income $ 289 $ 165 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal place, eg. 1.8 or 126%) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2020, was $360.) C (d) Profit margin Return on assets. (Assets on December 31, 2020, were $ 2,360.) Return on common stockholders' equity. (Equity on December 31, 2020, was $ 910.) Debt to assets ratio (e) (1 (8) Times interest earned 2022 2021 Current ratio 21 :1 Inventory turnover Profit margin % % Return on assets 96 % Return on common stockholders equity. % 96 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % % Return on assets % Se Return on common stockholders' equity % % Debt to assets ratio % % Times interest earned times times eTextbook and Media Save for Later Attempts: 0 of 3 used Submit
