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    Ratios, common-size statements, and trend percents

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    Required
    1. Compute each year's current ratio.
    2. Express the income statement data in common-size percents.
    3. Express the balance sheet data in trend percents with 2004 as the base year.
    Analysis Component
    4. Comment on any significant relations revealed by the ratios and percents computed.

    Check (3) 2006,Total assets trend,
    124.34%

    © BrainMass Inc. brainmass.com October 9, 2019, 8:41 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/ratios-common-size-statements-and-trend-percents-159674

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    BENNINGTON COMPANY
    Current Ratios

    Assets Liabilities Ratio
    December 31, 2006: $48,480 $20,200 2.4 «- Correct!

    December 31, 2005: 37,924 19,960 1.9 «- Correct!

    December 31, 2000: 50,648 19,480 2.6 «- Correct!

    BENNINGTON COMPANY
    Common-Size Comparative Income Statement
    For Years Ended December 31, 2006, 2005, and 2004

    2006 2005 2004
    Sales 100.00% 100.00% 100.00% In common size income statement each element is
    Cost of goods sold 60.20% 62.50% 64.00% expressed as a percentage of sales
    Gross profit from ...

    Solution Summary

    The solution explains how to prepare common-size statements and trend percentages for Bennington Company

    $2.19