Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following financial information is for Blossom Company. BLOSSOM COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 71,830 $ 66,090 Debt investments (short-term)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
The following financial information is for Blossom Company. BLOSSOM COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 71,830 $ 66,090 Debt investments (short-term) 54,000 39,000 Accounts receivable 109,000 92,000 Inventory 235,000 164,000 Prepaid expenses 26,000 27,000 Land 134,000 134,000 Building and equipment (net) 259,000 185,000 Total assets $888,830 $707,090Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity $ 177,298 66,000 41,000 249,000 198,000 157,532 $888,830 $102,000 54,000 41,000 171,000 198,000 141,090 $707,090 BLOSSOM COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $894,450 $787,350 Cost of goods sold 638,400 574,000 Gross prot 256,050 213,350 Operating expenses 202,383 166,109 Net income $ 53,667 $47,241 Additional information: 1. Inventory at the beginning of 2021 was $116,000. 2. Accounts receivable (net) at the beginning of 202 1 were $89,000. 3. Total assets at the beginning of 2021 were $631,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. Compute the liquidity and protability ratios of Blossom Company for 2021 and 2022. (Round current ratio, asset turnover and earnings per share to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 1.8%. if % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).) 2022 2021 % Ct LIQUIDITY Current ratio :1 :1 Accounts receivables turnover times times Inventory turnover times times 2022 2021 % Change PROFITABILITY Prot margin % % Asset turnover times times Return on assets % % Earnings per $ $ share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Calculus

Authors: James Stewart

6th Edition

0495011606, 978-0495011606

Students also viewed these Accounting questions