4–27. (Analyzing financial statements) The last two years of financial statements for Blunt Industries are as follows: Blunt Industries Balance Sheets, December 31, 2015 and 2016 2015 2016 Cash $ 11,250 $ 650 Accounts receivable 15,625 20,800 Inventory 36,250 59,150 Total current assets $ 63,125 $ 80,600 Land $ 25,000 $ 33,800 Buildings and equipment 87,500 130,000 Less: Accumulated depreciation $ (35,000) $ (49,400) Total fixed assets 77,500 114,400 Total assets $140,625 $195,000 Accounts payable $ 13,125 $ 28,600 Short-term bank notes 21,250 61,100 Total current liabilities $ 34,375 $ 89,700 Long-term debt $ 35,938 $ 29,835 Total liabilities $70,313 $119,535 Common stock 39,375 40,950 Retained earnings 30,938 34,515 Total common stockholders’ equity $ 70,313 $ 75,465 Total debt and stockholders’ equity $140,625 $195,000 Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover Average collection period Total asset turnover Fi
