ooo T-Mobile Wi-Fi 8:48 PM a edugen.wileyplus.com 2016 and 2017 are presented as

Question

ooo T-Mobile Wi-Fi 8:48 PM a edugen.wileyplus.com 2016 and 2017 are presented as follows. (Amounts in thousands.) BLOSSOM COMPANY Balance Sheets 1.2008.20 BLOSSOM COMPANY For the Year Ended 31 and expense Iscome before Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, eg. 1.8 or 12.6%.) a) Current ratio. b) Inventory turnover. (Inventory on 12/31/15, was $350.) id Profit margin. d) Return on assets. (Assets on 12/31/15, were $2,080.) Return on common stockholders' equity. (Stockholders' equity on 12/31/15, was $960.) Debt to assets ratio. s) Times interest earned. Current ratie

Explanation / Answer

2017 2016

current ratio =1610/1070 =1540/960

inventory turnover =3860/((520+450)/2) =3520/((350+450)/2)

profit margin =217/3860*100 =77/3520*100

return on assets =3860/((2740+2610)/2) =3520/((2610+2080)/2)

return on common stockholders equity =217/((1200+1210)/2) =77/((960+1210)/2)

debt to asset ratio =(1070+470)/(2740) =(960+440)/(2610)

time interest earned =(310+25)/25 =(110+25)/25

2017 2016

current ratio 1.5 1.6

inventory turnover 8.0 8.8

profit margin 5.6 2.2

return on assets 144.3 150.1

return on common stockholders equity 18.0 7.1

debt to asset ratio 56.2 53.6

time interest earned 13.4 5.4

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