Question

The comparative statements of Blossom Company are presented here. BLOSSOM COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,512,400 $1,400,000 Cost of goods sold 847,000 804,800 Gross profit 665,400 595,200 Selling and administrative expenses 400,000 383,200 Income from operations 265,400 212,000 Other expenses and losses Interest expense 17,600 16,000 Income before income taxes 247,800 196,000 Income tax expense 74,340 58,800 Net income $ 173,460 $ 137,200

BLOSSOM COMPANY Balance Sheets December 31
Assets		2022		2021
Current assets
Cash		$ 48,080		$ 51,360
Debt investments (short-term)		59,200		40,000
Accounts receivable		94,240		82,240
Inventory		100,800		92,400
Total current assets		302,320		266,000
Plant assets (net)		519,200		416,240
Total assets		$821,520		$682,240
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 128,000		$116,320
Income taxes payable		34,800		33,600
Total current liabilities		162,800		149,920
Bonds payable		176,000		160,000
Total liabilities		338,800		309,920
Stockholders’ equity
Common stock ($4 par)		232,000		240,000
Retained earnings		250,720		132,320
Total stockholders’ equity		482,720		372,320
Total liabilities and stockholders’ equity		$821,520		$682,240

All sales were on account. Net cash provided by operating activities for 2022 was $176,000. Capital expenditures were $108,800, and cash dividends were $55,060.

Compute the following ratios for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)

(a)		Earnings per share		$enter earnings per share in dollars
(b)		Return on common stockholders’ equity		enter return on common stockholders’ equity in percentages	%
(c)		Return on assets		enter return on assets in percentages	%
(d)		Current ratio		enter current ratio	:1
(e)		Accounts receivable turnover		enter accounts receivable turnover in times	times
(f)		Average collection period		enter average collection period in days	days
(g)		Inventory turnover		enter inventory turnover in times	times
(h)		Days in inventory		enter days in inventory	days
(i)		Times interest earned		enter times interest earned	times
(j)		Asset turnover		enter asset turnover in times	times
(k)		Debt to assets ratio		enter debt to assets ratio in percentages	%
(l)		Free cash flow		$enter free cash flow in dollars

Answer 1

earnings per share	net income / shares outstanding
	2022 ($)
net income	173460
shares outstanding	58000
earnings per share	2.99
return on common stockholders equity	net income / shareholders equity
	2022 ($)
net income	173460
shareholders equity	482720
return on common stockholders equity	35.93%
return on assets	`net income / average total assets
	2022 ($)
net income	173460
opening total assets	682240
closing total assets	821520
average total assets	751880
return on assets	23.07%
current ratio	current assets / current liabilities
	2022 ($)
total current assets	302320
total current liabilities	162800
current ratio	1.86