Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The condensed financial statements of Blossom Company for the years 2021 and 2022 are presented below. BLOSSOM COMPANY Balance Sheets December 31 (in thousands)

image

The condensed financial statements of Blossom Company for the years 2021 and 2022 are presented below. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Current assets Cash and cash equivalents $300 $360 Accounts receivable (not) 510 440 Inventary 560 490 Prepaid expenses 136 160 Total current assets 1,530 1.450 Property, plant, and equipment (net) 410 380 Investments 50 50 Intangibles and other assets 530 510 Total assets $2,520 $2,390 Current liabilities $960 $830 Long-term liabilities 560 480 Stockholders' equity-common 1,060 1,000 Total liabilities and stockholders' equity $2,520 $2.390 BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) Sales revenue 2022 2021 $3,900 $3,500 Costs and expenses Cost of goods sold 1,010 920 Selling & administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,420 3,280 Income before income taxes 480 200 Income tax coxpense 192 112 Net income $289 $169 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, eg 1.33 and all other answers to 1 decimal place, eg. 1.8 or 12.6%) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2020, was $340) (c) Profit margin. (d) Return on assets (Assets on December 31, 2020, were $2,360.) Return on common stockholders' equity. (Equity on December 31, 2020, was $910) (0 Debt to assets ratio. Times interest earned. 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Ratios with workings are given below 2022 2021 Total Current Assets TCA ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

13th edition

978-1-119-4110, 1119411483, 9781119411017, 978-1119411482

More Books

Students also viewed these Accounting questions

Question

=+Name the four major entertainment awards?

Answered: 1 week ago