Question
The financial statements of Blossom Company appear below: BLOSSOMCOMPANY Comparative Balance Sheet December 31 Assets 2021 2020 Cash $28,200 $41,000 Debt investments 21,000 61,000 Accounts
The financial statements of Blossom Company appear below:
BLOSSOMCOMPANY Comparative Balance Sheet December 31 | |||||
---|---|---|---|---|---|
Assets | 2021 | 2020 | |||
Cash | $28,200 | $41,000 | |||
Debt investments | 21,000 | 61,000 | |||
Accounts receivable (net) | 51,000 | 31,000 | |||
Inventory | 141,000 | 171,000 | |||
Property, plant and equipment (net) | 169,650 | 201,000 | |||
Total assets | $410,850 | $505,000 | |||
Liabilities and stockholders' equity | |||||
Accounts payable | $26,000 | $31,000 | |||
Short-term notes payable | 41,000 | 91,000 | |||
Bonds payable | 76,000 | 161,000 | |||
Common stock | 161,000 | 146,000 | |||
Retained earnings | 106,850 | 76,000 | |||
Total liabilities and stockholders' equity | $410,850 | $505,000 |
BLOSSOMCOMPANY Income Statement For the Year Ended December 31, 2021 | ||||
---|---|---|---|---|
Net sales (all on credit) | $366,000 | |||
Cost of goods sold | 185,000 | |||
Gross profit | 181,000 | |||
Expenses | ||||
Interest expense | $12,000 | |||
Selling expenses | 31,000 | |||
Administrative expenses | 21,000 | |||
Total expenses | 64,000 | |||
Income before income taxes | 117,000 | |||
Income tax expense | 36,150 | |||
Net income | $80,850 |
Additional information:
a. | Cash dividends of $50,000 were declared and paid on common stock in 2021. | |
b. | The weighted-average number of shares of common stock outstanding during 2021 was 50,000. | |
c. | The market price of common stock on December 31, 2021, was $16 per share. | |
d. | Net cash provided by operating activities for 2021 was $71,000. |
Using the financial statements and additional information, compute the following ratios for the Blossom Company for 2021. (Use 365 days for calculation. Round Inventory turnover answer to 2 decimal places, e.g. 52.72. Other all answers to 1 decimal place, e.g. 52.7.)
1. | Current ratio | enter ratio rounded to 1 decimal place | :1 | ||
---|---|---|---|---|---|
2. | Return on common stockholders' equity | enter percentages rounded to 1 decimal place | % | ||
3. | Price-earnings ratio | enter a number of times rounded to 1 decimal place | times | ||
4. | Inventory turnover | enter ratio rounded to 2 decimal place | :1 | ||
5. | Accounts receivable turnover | enter a number of times rounded to 1 decimal place | times | ||
6. | Times interest earned | enter a number of times rounded to 1 decimal place | times | ||
7. | Profit margin | enter percentages rounded to 1 decimal place | % | ||
8. | Days in inventory | enter percentages rounded to 1 decimal place | days | ||
9. | Payout ratio | enter percentages rounded to 1 decimal place | % | ||
10. | Return on assets | enter percentages rounded to 1 decimal places | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started