Selected comparative financial
statements of Bennington Company follow.
P17-1A
Ratios, common-size statements, and trend percents
P17-1A
Selected comparative financial statements of Bennington
Company follow.
BENNINGTON COMPANY
Comparative Income Statements
For Years Ended December 31,
2012, 2011, and 2010
2012 2011 2010
Sales . . . . . . . . . . . . . . . . . .
. . . . . . . $444,000 $340,000 $236,000
Cost of goods sold . . . . . . . . . . . .
. 267,288 212,500 151,040
Gross profit . . . . . . . . . . . . . . .
. . . . 176,712 127,500 84,960
Selling expenses . . . . . . . . . . . . .
. . 62,694 46,920 31,152
Administrative expenses . . . . . . . . . 40,137 29,920
19,470
Total expenses . . . . . . . . . . . . . .
. . 102,831 76,840 50,622
Income before taxes . . . . . . . . . . .
. 73,881 50,660 34,338
Income taxes . . . . . . . . . . . . . . .
. . . 13,764 10,370 6,962
Net income . . . . . . . . . . . . . . . .
. . . $ 60,117 $ 40,290 $ 27,376
BENNINGTON COMPANY
Comparative Balance Sheets
December 31, 2012, 2011, and 2010
2012 2011 2010
Assets
Current assets . . . . . . . . . . . . . .
. . . . $
48,480 $ 37,924 $ 50,648
Long-term investments . . . . . . . . . .
. 0 500 3,720
Plant assets, net . . . . . . . . . . . .
. . . . . 90,000 96,000 57,000
Total assets . . . . . . . . . . . . . . .
. . . . . $138,480 $134,424 $111,368
Liabilities
and Equity
Current liabilities . . . . . . . . . . .
. . . . $ 20,200 $ 19,960 $ 19,480
Common stock . . . . . . . . . . . . . . .
. . 72,000 72,000 54,000
Other paid-in capital . . . . . . . . . .
. . . 9,000 9,000 6,000
Retained earnings . . . . . . . . . . . .
. . . 37,280 33,464 31,888
Total liabilities and equity . . . . . . .
. . $138,480 $134,424 $111,368
Required
1.
Compute each year’s current ratio. (Round ratio amounts to
one decimal.)
2.
Express the income statement data in common-size percents.
(Round percents to two decimals.)
3. Express the balance sheet
data in trend percents with 2010 as the base year. (Round percents to two
decimals.)
Analysis Component
4.
Comment on any significant relations revealed by the ratios
and percents computed.
Check
(3) 2012, Total assets trend, 124.34%
SOLUTION
PREVIEW
|
|
2012
|
2011
|
2010
|
|
Sales
|
100.00%
|
100.00%
|
100.00%
|
|
Cost
of goods sold
|
60.20%
|
62.50%
|
64.00%
|
|
Gross
profit
|
39.80%
|
37.50%
|
36.00%
|
File
name: P17-1A-Bennington-Company.xls
File type: XLS Price: $10
