The following financial information is for Blossom Company.

The following financial information is for Blossom Company. BLOSSOM COMPANY Balance Sheets December 31 2016 Assets 2017 Cash $72,000 69,000 Debt investments (short-term) 52,000 41,000 Accounts receiva ble 110,000 92,000 Inventory 234,000 166,000 Prepaid expenses 24,000 23,000 Land 131,000 131,000 260,000 187,000 Building and equipment (net) $883,000 $709,000 Total assets Liabilities and Stockholders' Equity Notes payable $169,000 $108,000 Accounts payable 64,000 54,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2020 252,000 171,000 Common stock, $10 par 205,000 205,000 Retained earnings 151,000 129,000 $883,000 $709,000 Total liabilities and stockholders' equity BLOSSOM COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $899,000 $788,000 Cost of goods sold 647,000 574,000 Gross profit 252,000 214,000 195,000 159,000 Operating expenses $57,000 55,000 Net income Additional information: 1. Inventory at the beginning of 2016 was $117,000 2. Accounts receivable (net) at the beginning of 2016 were $88,000 3. Total assets at the beginning of 2016 were $631,000. 4. No common stock transactions occurred during 2016 or 2017 5. All sales were on account. Compute the liquidity and profitability ratios of Blossom Company for 2016 and 2017. (Round current ratio and asset turnover 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%).) 2017 2016 % Change LIQUIDITY Current ratio 1.79 1 1.92 1 -6.8 % Accounts receivables turnover 8.90 times 8.76 times 1.6% Inventory turnover 3.24 times 4.06 times -20.2% 2017 2016 % Change PROFITABILITY Profit margin 6.34 % 6.98% -9.2% Asset turnover 1.13 times 1.18 times -4.2% Return on assets 7.16 % 8.21 % -12.8% Earnings per share $ 2.78 2.68 3.7% The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2017, and (2) as of December 31, 2018, after giving effect to the situation. (Round all answers to 1 decimal places, e.g. 1.8 or 1.8% . If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).) Situation Ratio 1. 18,000 shares of common stock were sold at par on July 1, 2018. Net income for 2018 was $55,000 Return on common stockholders' equity 2. All of the notes payable were paid in 2018. All other liabilities remained at the same levels as at December 31, 2018. At December 31, 2018, total assets were $906,000. Debt to assets ratio 3. The market price of common stock was $9 and $13 on December 31, 2017 and 2018, respectively. Net income for 2018 was $55,000 Price-earnings ratio % Change 2018 2017 Return on common stockholders' equity 16.06 % Debt to assets ratio % Price earnings ratio times times %