Question

BLOSSOM COMPANY Balance Sheets December 31 Assets 2022 Cash $ 72,000 Debt investments (short-term) 54,000 Accounts receivable 109,000 Inventory 235,000 Prepaid expenses 26,000 Land 134,000 Building and equipment (net) 259,000 Total assets $889,000 Liabilities and Stockholders' Equity Notes payable $170,000 Accounts payable 66,000 Accrued liabilities 41,000 Bonds payable, due 2025 249,000 Common stock, $10 par 198,000 Retained earnings 165,000 Total liabilities and stockholders' equity $889,000 - 2021 $ 67,000 39,000 92,000 164,000 27,000 134,000 185,000 $708,000 $102,000 54,000 41,000 171,000 198,000 142,000 $708,000 BLOSSOM COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $898,000 $785,000 Cost of goods sold 643,000 576,000 Gross profit 255,000 209,000 Operating expenses 198,000 159,000 Net income $ 57,000 $50,000 Additional information:

Answer 1

(b)

Return on common stockholders equity = _ Profit - Preferred Dividend Average common shareholder's equity 2022 = 28.8% $57000-$0 ($198000+$198000)/2 2023 = 18.1% $53000-$0 [($198000+($198000+$190000)]2 %Change -37.15% Debt to asset ratio Total fiabilities Total assets 2022 = 59% $526,000 $889,000 2023 = 40% $356,000 $894,000 Change -32.20%

Working as follows: 2022 2023 Total liabilities: Note payable Accounts payable Accrued liabilities Bonds payable Total $170,000 $66.000 $66.000 $41,000 $41,000 $249,000 $249,000 $526,000 $356,000 Price Earnings Market price per share Eatings par share 2022 = $9 3.125 times $2.88 2023 = $13 $1.37 9.49 times Change 203.68%

EPS (2023) = Net Income Outstanding shares EPS = $53000/[(19800+19000)] 1.37

Answer 2

Problem 13-04A.xlsx

Input the numbers you need to