Selected comparative financial statements of Bennington Company follow.
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BENNINGTON COMPANY Comparative Income Statements For Years Ended December 31,2012,2011,and 2010 |
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2012 |
2011 |
2010 |
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Sales |
$444,000 |
$340,000 |
$236,000 |
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Cost of goods sold |
267,288 |
212,500 |
151,040 |
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Gross profit |
176,712 |
127,500 |
84,960 |
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Selling expenses |
62,694 |
46,920 |
31,152 |
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Administrative expenses |
40,137 |
29,920 |
19,470 |
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Total expenses |
102,831 |
76,840 |
50,622 |
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Income before taxes |
73,881 |
50,660 |
34,338 |
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Income taxes |
13,764 |
10,370 |
6,962 |
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Net income |
$ 60,117 |
$ 40,290 |
$ 27,376 |
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BENNINGTON COMPANY Comparative Balance Sheets December 31,2012,2011 and 2010 |
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2012 |
2011 |
2010 |
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Assets |
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Current assets |
$ 48,480 |
$ 37,924 |
$ 50,648 |
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Long term investments |
0 |
500 |
3,720 |
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Plant assets, net |
90,000 |
96,000 |
57,000 |
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Total assets |
$138,480 |
$134,424 |
$111,368 |
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Liabilities and Equity |
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Current liabilities |
$ 20,200 |
$ 19,960 |
$ 19,480 |
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Common stock |
72,000 |
72,000 |
54,000 |
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Other paid in capital |
9,000 |
9,000 |
6,000 |
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Retained earnings |
37,280 |
33,464 |
31,888 |
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Total liabilities and equity |
$138,480 |
$134,424 |
$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.)
4. Comment on any significant relations revealed by the ratios and percents computed.