Question

BLOSSOM COMPANY Balance Sheets December 31 2020 2019 Current assets $330 $360 640 570 Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses 520 450 160 1,610 Total current assets 1,610 1,540 180 Investments 180 420 Property, plant, and equipment Intangibles and other assets 380 510 530 Total assets $2,740 $2,610 $960 $1,070 470 1,200 440 Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 1,210 $2,740 $2,610 2019 $3,520 BLOSSOM COMPANY Income Statements For the Years Ended December 31 2020 Sales revenue $3,860 Costs and expenses Cost of goods sold 1,125 Selling & administrative expenses 2,400 Interest expense 25 Total costs and expenses 3,550 Income before income taxes 310 Income tax expense 93 Net income $ 217 1,060 2,330 20 3,410 110 33 $ 77 Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnov (a) (b) (c) (d) Current ratio. Inventory turnover. (Inventory on 12/31/18, was $350.) Profit margin. Return on assets. (Assets on 12/31/18, were $2,080.) Return on common stockholders' equity. (Stockholders' equity on 12/31/18, was $960.) Debt to assets ratio. Times interest earned. (e) (f) (9)

Answer 1

In the given question it doesn't mention about rounding off answer. So I have given answers in two ways ( I e., Round off to one digit and two digits)

Net income profit margin Xloo sales revenue 2020 217 X:00 -15.629.)6954 11 38GO 2019 x100 = (2.19 % (2.19 %) con 2.24 3,520 d) Assets. Return on Net income xcoo. Average total Assets. 2020 29.00+ 2610 2675 Average total Assets 2 Retuon on Assets Q17 811% = x 100 2675 8.1% 2019 Assets total 2610 + 2080 = 2345 Average 2 Return on Assets 3.28% Xloo 2345 313%.

Income before interest and income you & Times interest earned Interest expense 25 2020 217937 - 13.4 25 2019 77+33+ 20 6.5 20

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