Bennis Company has the following comparative balance sheet data.
BENNIS COMPANY
Balance Sheets
December 31
2012 2011
Cash $ 15,170 $ 30,360
Receivables (net) 69,670 59,630
Inventories 59,700 50,160
Plant assets (net) 199,500 179,900
$344,040 $320,050
Accounts payable $50,130 $53,700
Mortgage payable (15%) 100,300 100,300
Common stock, $10 par 140,200 120,500
Retained earnings 53,410 45,550
$344,040 $320,050
Additional information for 2012:
Net income was $25,470.
Sales on account were $410,300. Sales returns and allowances were $19,800.
Cost of goods sold was $197,900.
The allowance for doubtful accounts was $2,580 on December 31, 2012, and $1,770 on December 31, 2011.
Compute the following ratios at December 31, 2012. (a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory turnover. (Round answers to 1 decimal place, e.g. 10.5.)
(a) Current ratio : 1
(b) Acid-test ratio : 1
(c) Receivables turnover _______ times
(d) Inventory turnover ________ times
BENNIS COMPANY
Balance Sheets
December 31
2012 2011
Cash $ 15,170 $ 30,360
Receivables (net) 69,670 59,630
Inventories 59,700 50,160
Plant assets (net) 199,500 179,900
$344,040 $320,050
Accounts payable $50,130 $53,700
Mortgage payable (15%) 100,300 100,300
Common stock, $10 par 140,200 120,500
Retained earnings 53,410 45,550
$344,040 $320,050
Additional information for 2012:
Net income was $25,470.
Sales on account were $410,300. Sales returns and allowances were $19,800.
Cost of goods sold was $197,900.
The allowance for doubtful accounts was $2,580 on December 31, 2012, and $1,770 on December 31, 2011.
Compute the following ratios at December 31, 2012. (a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory turnover. (Round answers to 1 decimal place, e.g. 10.5.)
(a) Current ratio : 1
(b) Acid-test ratio : 1
(c) Receivables turnover _______ times
(d) Inventory turnover ________ times
