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Ratios, common-size statements, and trend percents

Please see attached file for full problem description.

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%

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Solution Preview

Please see the attached file.

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