Selected comparative financial statements of bennington


Problem - 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 21 2,500 1 51,040

Gross profit . . . . . . . . . . . . . . . . . . . 1 76,71 2 1 27,500 84,960

Selling expenses . . . . . . . . . . . . . . . 62,694 46,920 31,152

Administrative expenses . . . . . . . . . 40,1 37 29,920 1 9,470

Total expenses . . . . . . . . . . . . . . . . 1 02,831 76,840 50,622

Income before taxes . . . . . . . . . . . . 73,881 50,660 34,338

Income taxes . . . . . . . . . . . . . . . . . . 1 3,764 1 0,370 6,962

Net income . . . . . . . . . . . . . . . . . . . $ 60,1 1 7 $ 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 . . . . . . . . . . . . . . . . . . . . $1 38,480 $1 34,424 $111,368

Liabilities and Equity

Current liabilities . . . . . . . . . . . . . . . $ 20,200 $ 1 9,960 $ 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 . . . . . . . . . $1 38,480 $1 34,424 $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.).

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Accounting Basics: Selected comparative financial statements of bennington
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