fianacial analysis 509388
Problem 17-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3
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Selected comparative financial statements of Bennington Company follow:
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BENNINGTON COMPANY |
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Comparative Income Statements |
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For Years Ended December 31, 2012, 2011, and 2010 |
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2012 |
2011 |
2010 |
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Sales |
$ |
457,083 |
$ |
350,163 |
$ |
243,000 |
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Cost of goods sold |
275,164 |
219,202 |
155,520 |
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Gross profit |
181,919 |
130,961 |
87,480 |
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Selling expenses |
64,906 |
48,322 |
32,076 |
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Administrative expenses |
41,137 |
30,814 |
20,169 |
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Total expenses |
106,043 |
79,136 |
52,245 |
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Income before taxes |
75,876 |
51,825 |
35,235 |
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Income taxes |
14,113 |
10,624 |
7,153 |
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Net income |
$ |
61,763 |
$ |
41,201 |
$ |
28,082 |
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BENNINGTON COMPANY |
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Comparative Balance Sheets |
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December 31, 2012, 2011, and 2010 |
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2012 |
2011 |
2010 |
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Assets |
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Current assets |
$ |
47,321 |
$ |
37,023 |
$ |
49,491 |
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Long-term investments |
0 |
1,200 |
3,960 |
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Plant assets, net |
85,231 |
90,490 |
53,188 |
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Total assets |
$ |
132,552 |
$ |
128,713 |
$ |
106,639 |
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Liabilities and Equity |
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Current liabilities |
$ |
19,353 |
$ |
19,178 |
$ |
18,662 |
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Common stock |
71,000 |
71,000 |
53,000 |
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Other paid-in capital |
8,875 |
8,875 |
5,889 |
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Retained earnings |
33,324 |
29,660 |
29,088 |
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Total liabilities and equity |
$ |
132,552 |
$ |
128,713 |
$ |
106,639 |
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references
value:
1.00 points
Problem 17-1A Part 1
Required:
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
value:
1.00 points
Problem 17-1A Part 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 |
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2012 |
2011 |
2010 |
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Sales |
% |
% |
% |
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|
Cost of goods sold |
|||||
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Gross profit |
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Selling expenses |
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Administrative expenses |
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Total expenses |
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Income before taxes |
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Income taxes |
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Net income |
% |
% |
% |
||
eBook Links (3)references
value:
1.00 points
Problem 17-1A Part 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.)
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BENNINGTON COMPANY |
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2012 |
2011 |
2010 |
|
|
Assets |
|||
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Current assets |
% |
% |
% |
|
Long-term investments |
|||
|
Plant assets |
|||
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Total assets |
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Liabilities and Equity |
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Current liabilities |
% |
% |
% |
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Common stock |
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Other contributed capital |
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Retained earnings |
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Total liabilities and equity |
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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.)
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McCORD CORPORATION |
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|
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 |
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McCORD CORPORATION |
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Assets |
Liabilities and Equity |
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Cash |
$ |
16,000 |
Accounts payable |
$ |
16,500 |
|
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Short-term investments |
8,800 |
Accrued wages payable |
4,800 |
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Accounts receivable, net |
31,400 |
Income taxes payable |
3,300 |
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Notes receivable (trade)* |
4,000 |
Long-term note payable, secured |
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Merchandise inventory |
32,150 |
by mortgage on plant assets |
65,400 |
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Prepaid expenses |
3,050 |
Common stock |
95,000 |
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|
Plant assets, net |
153,300 |
Retained earnings |
63,700 |
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Total assets |
$ |
248,700 |
Total liabilities and equity |
$ |
248,700 |
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* 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 |
% |
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