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  1. business
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  3. blossom company has $1,110,000 in assets and $1,11

Blossom Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 37,600 shares outstanding...

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Accounting

Blossom Company has $1,110,000 in assets and $1,110,000 in stockholders' equity, with 37,600 shares outstanding the entire year. Ithas a return on assets of 10%. During 2021, it had net income of $111,000. On January 1,2022, it issued $408,000 in debt at 6% andimmediately repurchased 18,800 shares for $408,000. Management expected that, had it not issued the debt, it would have had netincome of $111,000 in 2022. Assume the company pays dividends on common stock equal to its net income each year. Also, assumethe accrued interest on the debt was paid at December 31,2022 and the company has no other debt outstanding at year-end. What is the debt to asset ratio for 2021 and 2022

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