Question - Bennis Company has the following comparative balance sheet data.
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BENNIS COMPANY Balance Sheets December 31
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2012
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2011
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Cash
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$ 15,470
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$ 30,340
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Receivables (net)
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70,090
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60,100
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Inventories
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60,480
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49,970
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Plant assets (net)
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199,900
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180,000
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$345,940
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$320,410
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Accounts payable
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$50,070
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$51,020
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Mortgage payable (15%)
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100,100
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100,100
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Common stock, $10 par
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139,700
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119,500
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Retained earnings
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56,070
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49,790
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$345,940
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$320,410
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Additional information for 2012:
1. Net income was $24,980.
2. Sales on account were $409,200. Sales returns and allowances were $19,000.
3. Cost of goods sold was $198,900.
4. The allowance for doubtful accounts was $2,600 on December 31, 2012, and $2,280 on December 31, 2011.
Compute the following ratios at December 31, 2012. (a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory turnover.