Problem 17-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3

[The following information applies to the questions displayed below.]

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 / $ / 457,083 / $ / 350,163 / $ / 243,000
Cost of goods sold / 275,164 / 219,202 / 155,520
Gross profit / 181,919 / 130,961 / 87,480
Selling expenses / 64,906 / 48,322 / 32,076
Administrative expenses / 41,137 / 30,814 / 20,169
Total expenses / 106,043 / 79,136 / 52,245
Income before taxes / 75,876 / 51,825 / 35,235
Income taxes / 14,113 / 10,624 / 7,153
Net income / $ / 61,763 / $ / 41,201 / $ / 28,082
BENNINGTON COMPANY
Comparative Balance Sheets
December 31, 2012, 2011, and 2010
2012 / 2011 / 2010
Assets
Current assets / $ / 47,321 / $ / 37,023 / $ / 49,491
Long-term investments / 0 / 1,200 / 3,960
Plant assets, net / 85,231 / 90,490 / 53,188
Total assets / $ / 132,552 / $ / 128,713 / $ / 106,639
Liabilities and Equity
Current liabilities / $ / 19,353 / $ / 19,178 / $ / 18,662
Common stock / 71,000 / 71,000 / 53,000
Other paid-in capital / 8,875 / 8,875 / 5,889
Retained earnings / 33,324 / 29,660 / 29,088
Total liabilities and equity / $ / 132,552 / $ / 128,713 / $ / 106,639

references

1.

value:
1.00 points

Problem 17-1A Part 1

Required:
1. / Compute each year's current ratio.(Round your answers to 1 decimal place.)
Current ratio / December 31, 2012: / to
Current ratio / December 31, 2011: / to
Current ratio / December 31, 2010: / to

eBook Links (3)references

2.

value:
1.00 points

Problem 17-1A Part 2

2. / Express the income statement data in common-size percents.(Percents are rounded to two decimals and thus may not exactly sum to totals and subtotals. Round your answers to 2 decimal places. Omit the "%" sign in your response.)
BENNINGTON COMPANY
Common-Size Comparative Income Statements
For Years Ended December 31, 2012, 2011, and2010
2012 / 2011 / 2010
Sales / % / % / %
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income taxes
Net income / % / % / %

eBook Links (3)references

3.

value:
1.00 points

Problem 17-1A Part 3

3. / Express the balance sheet data in trend percents with 2010 as the base year.(Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Omit the "%" sign in your response.)
BENNINGTON COMPANY
Balance Sheet Data in Trend Percents
December 31, 2012, 2011, and2010
2012 / 2011 / 2010
Assets
Current assets / % / % / %
Long-term investments
Plant assets
Total assets
Liabilities and Equity
Current liabilities / % / % / %
Common stock
Other contributed capital
Retained earnings
Total liabilities and equity

eBook Links (3)references

Problem 17-4A Calculation of financial statement ratios L.O. P3

Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $53,900; total assets, $229,400; common stock, $95,000; and retained earnings, $52,348.)
McCORD CORPORATION
Income Statement
For Year Ended December 31, 2011
Sales / $ / 450,600
Cost of goods sold / 297,450
Gross profit / 153,150
Operating expenses / 99,500
Interest expense / 3,900
Income before taxes / 49,750
Income taxes / 20,041
Net income / $ / 29,709
McCORD CORPORATION
Balance Sheet
December 31, 2011
Assets / Liabilities and Equity
Cash / $ / 16,000 / Accounts payable / $ / 16,500
Short-term investments / 8,800 / Accrued wages payable / 4,800
Accounts receivable, net / 31,400 / Income taxes payable / 3,300
Notes receivable (trade)* / 4,000 / Long-term note payable, secured
Merchandise inventory / 32,150 / by mortgage on plant assets / 65,400
Prepaid expenses / 3,050 / Common stock / 95,000
Plant assets, net / 153,300 / Retained earnings / 63,700
Total assets / $ / 248,700 / Total liabilities and equity / $ / 248,700
* These are short-term notes receivable arising from customer (trade) sales.
Required:
Compute the following.(Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the "%" sign in your response):
(1) / Current ratio / to
(2) / Acid-test ratio / to
(3) / Days' sales uncollected (including note) / days
(4) / Inventory turnover / times
(5) / Days' sales in inventory / days
(6) / Debt-to-equity ratio / to
(7) / Times interest earned / times
(8) / Profit margin ratio / %
(9) / Total asset turnover / times
(10) / Return on total assets / %
(11) / Return on common stockholders' equity / %