financial analsis

    0

    Click here to get an A+ paper at a Discount

    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 %

    Click here to have a similar paper done for you by one of our writers within the set deadline at a discounted

    Click here to get an A+ paper at a Discount


    Order This Paper Now

                                                                                                                                      Order Now