help $($a$)$ Current ratio.$($b$)$ Inventory turnover.$($c$)$ Profit margin.$($d$)$ Return on assets.$($e$)$ Return on common stockholders' equity.$($f$)$ Debt to assets ratio.$($g$)$ Times interest earned.

 

Transcribed Image Text:

The condensed financial statements of Blossom Company for the years 2021 and 2022 are as follows. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Stockholders' equity-common 1,080 1,080 Total liabilities and stockholders' equity $2,520 $2,390 BLOSSOM COMPANY Income Statements Current assets For the Years Ended December 31 (in thousands) Cash and cash equivalents $330 $360 Accounts receivable (net) 510 440 Sales revenue 2022 2021 $3,900 $3,560 Inventory 560 490 Costs and expenses Prepaid expenses 130 160 Cost of goods sold 1,010 930 Total current assets 1,530 1,450 Selling & administrative expenses 2,400 2,330 Property, plant, and equipment (net) 410 380 Interest expense 10 20 Investments 50 50 Total costs and expenses 3,420 3,280 Intangibles and other assets 530 510 Income before income taxes 480 280 Total assets $2,520 $2,390 Income tax expense 192 112 Current liabilities $860 $830 Long-term liabilities Stockholders' equity-common 580 480 Net income $288 $ 168 1.080 1.080 Net income $288 $168 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, eg 1.83. Round profit margin, return on assets, return on common stockholders' equity and debt to assets ratio to 1 decimal place, e.g. 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2020, was $360.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2020, were $2,360.) (e) Return on common stockholders' equity. (Equity on December 31, 2020, was $910.) (f) Debt to assets ratio. (g) Times interest earned. (a) Current ratio. (b) Inventory turnover. 2022 2021 :1 (a) Current ratio. (b) Inventory turnover. (c) Profit margin. ins for 2022 and 2021/Round curra rnover to (d) Return on assets. (e) Return on common stockholders' equity. (f) Debt to assets ratio. :1 (g) Times interest earned. 2022 :1 2021 :1 % % % % % % % times The condensed financial statements of Blossom Company for the years 2021 and 2022 are as follows. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Stockholders' equity-common 1,080 1,080 Total liabilities and stockholders' equity $2,520 $2,390 BLOSSOM COMPANY Income Statements Current assets For the Years Ended December 31 (in thousands) Cash and cash equivalents $330 $360 Accounts receivable (net) 510 440 Sales revenue 2022 2021 $3,900 $3,560 Inventory 560 490 Costs and expenses Prepaid expenses 130 160 Cost of goods sold 1,010 930 Total current assets 1,530 1,450 Selling & administrative expenses 2,400 2,330 Property, plant, and equipment (net) 410 380 Interest expense 10 20 Investments 50 50 Total costs and expenses 3,420 3,280 Intangibles and other assets 530 510 Income before income taxes 480 280 Total assets $2,520 $2,390 Income tax expense 192 112 Current liabilities $860 $830 Long-term liabilities Stockholders' equity-common 580 480 Net income $288 $ 168 1.080 1.080 Net income $288 $168 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, eg 1.83. Round profit margin, return on assets, return on common stockholders' equity and debt to assets ratio to 1 decimal place, e.g. 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2020, was $360.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2020, were $2,360.) (e) Return on common stockholders' equity. (Equity on December 31, 2020, was $910.) (f) Debt to assets ratio. (g) Times interest earned. (a) Current ratio. (b) Inventory turnover. 2022 2021 :1 (a) Current ratio. (b) Inventory turnover. (c) Profit margin. ins for 2022 and 2021/Round curra rnover to (d) Return on assets. (e) Return on common stockholders' equity. (f) Debt to assets ratio. :1 (g) Times interest earned. 2022 :1 2021 :1 % % % % % % % times

Answer rating: 100% (QA)

Gemini was just updated See update close Conversation with Gemini On September 1 Eden County Club had an inventory of 40 golf shirts at a cost of 17 each The company uses a perpetual inventory system ... View the full answer