Question - Bennis Company has the following comparative balance sheet data.
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BENNIS Company Balance Sheets December 31
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2012
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2011
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Cash
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$15,000
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$30,000
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Receivables (net)
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70,000
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60,000
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Inventories
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60,000
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50,000
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Plant asserts (net)
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200,000
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180,000
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$345,000
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$320,000
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Accounts payable
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$50,000
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$60,000
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Mortgage payable (15%)
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100,000
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100,000
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Common stock, $10 par
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140,000
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120,000
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Retained earnings
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55,000
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40,000
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$345,000
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$320,000
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Additional information for 2012:
1. Net income was $25,000.
2. Sales on account were $410,000. Sales returns and allowances were $20,000.
3. Cost of goods sold was $198,000.
4. The allowance for doubtful accounts was $2,500 on December 31, 2012, and $2,000 on December 31, 2011.
Instructions - Compute the following ratios at December 31, 2012.
(a) Current.
(b) Acid-test.
(c) Receivables turnover.
(d) Inventory turnover.