financial analsis

Question

financial analsis

Question # 00005393 Posted By: ACCOUNTS_GURU Updated on: 12/15/2013 04:30 AM Due on: 12/31/2014

Subject Accounting Topic Accounting Tutorials:

Question

Fianacial analysis

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, and 2010
	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, and 2010
	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	%