The comparative statements of Blossom Company are presented here: Blossom Company Income Statements For the Years Ended December 31 2020 2019 Net sales $1,899,640 $1,759,600 Cost of goods sold 1,067,640 1,015,100 Gross profit 832,000 744,500 Selling and administrative expenses 509,100 488,100 Income from operations 322,900 256,400 Other expenses and losses Interest expense 23,500 21,500 Income before income taxes 299,400 234,900 Income tax expense 93,500 74,500 Net income $205,900 $160,400 Blossom Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 126,900 111,900 Inventory 127,500 117,000 Total current assets 388,500 343,100 Plant assets (net) 659,000 530,300 Total assets $1,047,500 $873,400 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $169,100 $154,500 Income taxes payable 45,000 43,500 Total current liabilities 214,100 198,000 Bonds payable 230,000 210,000 Total liabilities 444,100 408,000 Stockholders’ equity Common stock ($5 par) 290,000 300,000 Retained earnings 313,400 165,400 Total stockholders’ equity 603,400 465,400 Total liabilities and stockholders’ equity $1,047,500 $873,400 All sales were on account. Net cash provided by operating activities for 2020 was $234,000. Capital expenditures were $137,000, and cash dividends were $57,900. Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.) (a) Earnings per share $enter a dollar amount rounded to 2 decimal places (b) Return on common stockholders’ equity enter percentages rounded to 2 decimal places % (c) Return on assets enter percentages rounded to 2 decimal places % (d) Current ratio enter Current ratio rounded to 2 decimal places :1 (e) Accounts receivable turnover enter Accounts receivable turnover in times rounded to 2 decimal places times (f) Average collection period enter Average collection period in days rounded to 2 decimal places days (g) Inventory turnover enter Inventory turnover in times rounded to 2 decimal places times (h) Days in inventory enter Days in inventory rounded to 2 decimal places days (i) Times interest earned enter Times interest earned rounded to 2 decimal places times (j) Asset turnover enter Asset turnover in times rounded to 2 decimal places times (k) Debt to assets ratio enter percentages rounded to 2 decimal places % (l) Free cash flow $enter a dollar amount rounded to 0 decimal places

The comparative statements of Blossom Company are presented here: Blossom Company Income Statements For the Years Ended December 31 2020 2019 Net sales $1,899,640 $1,759,600 Cost of goods sold 1,067,640 1,015,100 Gross profit 832,000 744,500 Selling and administrative expenses 509,100 488,100 Income from operations 322,900 256,400 Other expenses and losses Interest expense 23,500 21,500 Income before income taxes 299,400 234,900 Income tax expense 93,500 74,500 Net income $205,900 $160,400 Blossom Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 126,900 111,900 Inventory 127,500 117,000 Total current assets 388,500 343,100 Plant assets (net) 659,000 530,300 Total assets $1,047,500 $873,400 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $169,100 $154,500 Income taxes payable 45,000 43,500 Total current liabilities 214,100 198,000 Bonds payable 230,000 210,000 Total liabilities 444,100 408,000 Stockholders’ equity Common stock ($5 par) 290,000 300,000 Retained earnings 313,400 165,400 Total stockholders’ equity 603,400 465,400 Total liabilities and stockholders’ equity $1,047,500 $873,400 All sales were on account. Net cash provided by operating activities for 2020 was $234,000. Capital expenditures were $137,000, and cash dividends were $57,900. Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.) (a) Earnings per share $enter a dollar amount rounded to 2 decimal places (b) Return on common stockholders’ equity enter percentages rounded to 2 decimal places % (c) Return on assets enter percentages rounded to 2 decimal places % (d) Current ratio enter Current ratio rounded to 2 decimal places :1 (e) Accounts receivable turnover enter Accounts receivable turnover in times rounded to 2 decimal places times (f) Average collection period enter Average collection period in days rounded to 2 decimal places days (g) Inventory turnover enter Inventory turnover in times rounded to 2 decimal places times (h) Days in inventory enter Days in inventory rounded to 2 decimal places days (i) Times interest earned enter Times interest earned rounded to 2 decimal places times (j) Asset turnover enter Asset turnover in times rounded to 2 decimal places times (k) Debt to assets ratio enter percentages rounded to 2 decimal places % (l) Free cash flow $enter a dollar amount rounded to 0 decimal places

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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The comparative statements of Blossom Company are presented here:

Blossom Company Income Statements For the Years Ended December 31
	2020	2019
Net sales	$1,899,640	$1,759,600
Cost of goods sold	1,067,640	1,015,100
Gross profit	832,000	744,500
Selling and administrative expenses	509,100	488,100
Income from operations	322,900	256,400
Other expenses and losses
Interest expense	23,500	21,500
Income before income taxes	299,400	234,900
Income tax expense	93,500	74,500
Net income	$205,900	$160,400

Blossom Company Balance Sheets December 31
Assets	2020	2019
Current assets
Cash	$60,100	$64,200
Debt investments (short-term)	74,000	50,000
Accounts receivable	126,900	111,900
Inventory	127,500	117,000
Total current assets	388,500	343,100
Plant assets (net)	659,000	530,300
Total assets	$1,047,500	$873,400
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$169,100	$154,500
Income taxes payable	45,000	43,500
Total current liabilities	214,100	198,000
Bonds payable	230,000	210,000
Total liabilities	444,100	408,000
Stockholders’ equity
Common stock ($5 par)	290,000	300,000
Retained earnings	313,400	165,400
Total stockholders’ equity	603,400	465,400
Total liabilities and stockholders’ equity	$1,047,500	$873,400

All sales were on account. Net cash provided by operating activities for 2020 was $234,000. Capital expenditures were $137,000, and cash dividends were $57,900.

Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.)

(a)	Earnings per share	$enter a dollar amount rounded to 2 decimal places
(b)	Return on common stockholders’ equity	enter percentages rounded to 2 decimal places	%
(c)	Return on assets	enter percentages rounded to 2 decimal places	%
(d)	Current ratio	enter Current ratio rounded to 2 decimal places	:1
(e)	Accounts receivable turnover	enter Accounts receivable turnover in times rounded to 2 decimal places	times
(f)	Average collection period	enter Average collection period in days rounded to 2 decimal places	days
(g)	Inventory turnover	enter Inventory turnover in times rounded to 2 decimal places	times
(h)	Days in inventory	enter Days in inventory rounded to 2 decimal places	days
(i)	Times interest earned	enter Times interest earned rounded to 2 decimal places	times
(j)	Asset turnover	enter Asset turnover in times rounded to 2 decimal places	times
(k)	Debt to assets ratio	enter percentages rounded to 2 decimal places	%
(l)	Free cash flow	$enter a dollar amount rounded to 0 decimal places

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