Prepare 2025 income statements and a vertical analysis for Blossom Company and Splish Company (Round percentage answers to 1 decimal place, g 2.5%)
Prepare 2025 income statements and a vertical analysis for Blossom Company and Splish Company (Round percentage answers to 1 decimal place, g 2.5%)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Here are comparative financial statement data for Blossom Company and Splish Company, two competitors. All data are as of
December 31, 2025, and December 31, 2024
Net sales
Cost of goods sold
Operating expenses
Interest expeme
Income tax expense
Current assets
Plant assets (net)
Current liabilities
Long-term liabilities
Common stock $10 par
Retained earnings
Blossom Company
2025
$1,852.000
1,090,000
270,000
7,300
74,100
736.704
$706.047
1,190,568 1,130,000
149,895
171.342
257,617
203,400
1.130.000
1.130,000
389,760
331,305
2024
Dollars
eTextbook and Media
Splish Company
2025
$590,000
297,000
83,000
2.200
33.000
Prepare 2025 income statements and a vertical analysis for Blossom Company and Splish Company (Round percentage answers to
1 decimal place, eg 2.5%)
2024
188,339 $179,595
315,785 284,335
79,886
68,435
66,941
56,500
271,200 271,200
86,097
67.795
Condensed Income Statement
For the Year Ended December 31, 2025
Blossom Company
Percent
Dollars
Splish Company
Perce
Transcribed Image Text:Compute the 2025 return on assets and the return on common stockholders' equity for both companies. (Round answers to 1
decimal place, eg. 2.5%)
Return on assets
Return on common stockholders' equity
eTextbook and Media
Blossom Company
Splish Company
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Step 1: Meaning of vertical analysis
VIEWStep 2: The income statement and vertical analysis for 2025 for Company B and Company S:
VIEWStep 3: Computation of 2025 return on assets for both companies:
VIEWStep 4: Computation of 2025 return on common stockholders' equity for both companies:
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