View Policies Show Attempt History Current Attempt in Progress Blossom Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Blossom Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $352,000 $417,400 Accounts receivable, net 1,000,000 776,400 Inventory 717,000 681,000 Other current assets 381,300 247,000 Total current assets 2,450,300 2,121,800 Property, plant, & equipment, net 8,766,170 8,440,100 Total assets $11,216,470 $10,561,900 Liabilities and Stockholders' Equity - ACC-650 TOPIC 8 Assignment Question 5 of 8 0.67 / 8 Common stock, $0.25 par value 104,600 103,800 Retained earnings 4,195,370 3,660,600 Total stockholders' equity 4,358,870 3,823,300 Total liabilities and stockholders' equity $11,216,470 $10,561,900 Blossom Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,200 $9,613,900 Cost of goods sold 5,611,600 5,298,700 Gross profit 4,565,600 4,315,200 Operating expenses 2,840,200 2,634,100 Net operating income 1,725,400 1,681,100 Interest expense 300,300 308,600 Net income before taxes 1,425,100 1,372,500 Income taxes (30%) 427,530 411,750 Net income $997,570 $960,750 Dividends paid Preferred dividends 29.450 29,450 Common dividends 433,350 413,000 Total dividends paid 462,800 442,450 Net income retained 534,770 518,300 Retained earnings, beginning of year 3,660,600 3,142,300 Retained earnings, end of year $4,195,370 $3,660,600 (a-d) Your answer is partially correct. Calculate the following liquidity ratios for 2020. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.) a. Working capital b. Current ratio 0.78 C. Acid-test ratio d. Accounts receivable turnover times eTextbook and Media Save for Later Last saved 29 minutes ago. Attempts: 1 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. (e-f) Calculate the following liquidity ratios for 2020. (Round average collection period to O decimal place, e.g. 25 and inventory turnover ratio to 2 decimal places, e.g. 5.12. Use 365 days for calculation.) a. Average collection period days b. Inventory turnover times e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer g Calculate average days to sell inventory for 2020. (Round answer to O decimal places, e.g. 25. Use 365 days for calculation.) Average days to sell inventory days e Textbook and Media Save for Later Attempts: 0 of 3 used Submit
