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The condensed financial statements of Blossom Company for the years 2016 and 2017 are presented below. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2017 2016 Current assets $330 $360 510 440 560 490 Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) 130 160 1.530 1,450 410 380 Investments 50 50 Property, plant, and equipment (net) 410 380 Investments 50 50 Intangibles and other assets 530 510 Total assets $2,520 $2,390 Current liabilities $860 $830 Long-term liabilities 580 480 Stockholders' equity-common 1.080 1,080 Total liabilities and stockholders' equity $2.520 $2,390 BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2017 2016 Sales revenue dan income statements For the Year Ended December 31 (in thousands) 2017 2016 Sales revenue $3,900 $3,560 Costs and expenses Cost of goods sold 1,010 930 Selling & administrative expenses 2,400 2.330 Interest expense 10 20 Total costs and expenses 3,420 3,280 Income before income taxes 480 280 Income tax expense 192 112 Net income $ 288 $ 168 Como Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal place, es. 1.8 or 12.6%) ) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2015, was $360.) (c) Profit margin (d) Return on assets. (Assets on December 31, 2015, were $2,360) le Return on common stockholders equity. (Equity on December 31, 2015, was $910) Debt to assets ratio. s (8) Times interest earned, 2017 2016 Current ratio, 1:8 :1 1.7 2017 2016 Current ratio 1.8 1.7 :1 Inventory turnover. 19 9 22 Profit margin 7.4 % 4.7 de Return on assets 11.7 % 7.1 % Return on common stockholders' equity 26.7 % 16.9 % Debt to assets ratio. 23.0 96 20.1 % Times interest earned, 49 times 15 times

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