The comparative statements of Blossom Company are presented here. BLOSSOM COMPAN
ID: 2592032 • Letter: T
Question
The comparative statements of Blossom Company are presented here.
BLOSSOM COMPANY
Income Statements
For the Years Ended December 31
2017
2016
$1,899,640
$1,759,600
1,067,640
1,015,100
832,000
744,500
509,100
488,100
322,900
256,400
23,500
21,500
299,400
234,900
93,500
74,500
$ 205,900
$ 160,400
BLOSSOM COMPANY
Balance Sheets
December 31
Assets
2017
2016
$ 60,100
$ 64,200
74,000
50,000
126,900
111,900
127,500
117,000
388,500
343,100
659,000
530,300
$1,047,500
$873,400
Liabilities and Stockholders’ Equity
$ 169,100
$154,500
45,000
43,500
214,100
198,000
230,000
210,000
444,100
408,000
290,000
300,000
313,400
165,400
603,400
465,400
$1,047,500
$873,400
All sales were on account. Net cash provided by operating activities for 2017 was $234,000. Capital expenditures were $137,000, and cash dividends were $57,900.
Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
BLOSSOM COMPANY
Income Statements
For the Years Ended December 31
2017
2016
Net sales$1,899,640
$1,759,600
Cost of goods sold1,067,640
1,015,100
Gross profit832,000
744,500
Selling and administrative expenses509,100
488,100
Income from operations322,900
256,400
Other expenses and losses Interest expense23,500
21,500
Income before income taxes299,400
234,900
Income tax expense93,500
74,500
Net income$ 205,900
$ 160,400
Explanation / Answer
1 Earning Per Share 3.55 $ 2 Return on equity 34 % 3 Return on Asset (Investmet) 20 % 4 Current Ratio 1.81 :1 5 Accounts Receivable Turn over 3.05 times 6 Average Collection Period 120 days 7 Inventory Turnover 8.73 times 8 Days in Inventory 42 days 9 Times interest Earned 13.74 times 10 Asset turnover 1.02 times 11 Debt to Assets ratio 42.40 % 12 Free Cash Flow 97,000 $ 1 Earning Per Share Net Income / Number of Common Stock 205900 / 58000 3.55 2 Return on equity 205900/603400*100 Net Income / Stock holders equity 34 3 Return on Asset (Investmet) 205900/1047500*100 Net Income / Assets 20 4 Current Ratio 388500/214100 Current assets / Current liabilities 1.81 5 Accounts Receivable Turn Over 1899640 /(126900+111900)/2 Sales / Avg Acount Receivables 3.05 6 Average Collection Period 365 / 3.05 365 / Receivable Turn over 120 7 Inventory Turnover 1067640/(127500+117000)/2 Cost of Goods Sold / Avg Inventory 8.73 8 Days in inventory 365/8.73 365 / inventory Turn over 42 9 Time Interest earned 322900 / 23500 Operating Profit before interest / Interest 13.74 10 Asset turnover 1067640/1047500 Cost of goods sold / Total Assets 1.02 11 Debt to Assets ratio 444100 /1047500 Debt /Total assets 42.40 12 Free Cash Flow 234000 - 137000 Free Cash Flow(Operating Cash flow - Capital expenditure) 97,000