BENNINGTON COMPANY
Comparative Income Statements For Y.E. 12/31/06, 05, 04
2006 2005 2004
Sales . . . . . . . . . . . . . . . . . . . . $444,000 $340,000 $236,000
Cost of goods sold . . . . . . . . . . . 267,288 212,500 151,040
Gross profit . . . . . . . . . . . . . . . . 176,712 127,500 84,960
Selling expenses . . . . . . . . . . . . .62,694 46,920 31,152 Administrative expenses . . . . . . . 40,137 29,920 19,470
Total expenses . . . . . . . . . . . . . .102,831 76,840 50,622
Income before taxes . . . . . . . . . . 73,881 50,660 34,338
Income taxes . . . . . . . . . . . . . . . 13,764 10,370 6,962
Net income . . . . . . . . . . . . . . . . $60,117 $40,290 $27,376
BENNINGTON COMPANY
Comparative Balance Sheets December 31, 2006, 2005, and 2004
2006 2005 2004
Assets Current assets . . $ 48,480 $ 37,924 $ 50,648
Long-term investments . . 0 500 3,720
Plant assets, net . . . . . . . .90,000 96,000 57,000
Total assets . . . . . . . . . .$138,480 $134,424 $111,368
Liabilities & Equity
Current liabilities . . . . . . .$20,200 $19,960 $19,480
Common stock . . . . . . . . .72,000 72,000 54,000
Other contributed capital. . . 9,000 9,000 6,000
Retained earnings . . . . . . . 37,280 33,464 31,888
Total liabilities and equity .$138,480 $134,424 $111,368
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.
Comparative Income Statements For Y.E. 12/31/06, 05, 04
2006 2005 2004
Sales . . . . . . . . . . . . . . . . . . . . $444,000 $340,000 $236,000
Cost of goods sold . . . . . . . . . . . 267,288 212,500 151,040
Gross profit . . . . . . . . . . . . . . . . 176,712 127,500 84,960
Selling expenses . . . . . . . . . . . . .62,694 46,920 31,152 Administrative expenses . . . . . . . 40,137 29,920 19,470
Total expenses . . . . . . . . . . . . . .102,831 76,840 50,622
Income before taxes . . . . . . . . . . 73,881 50,660 34,338
Income taxes . . . . . . . . . . . . . . . 13,764 10,370 6,962
Net income . . . . . . . . . . . . . . . . $60,117 $40,290 $27,376
BENNINGTON COMPANY
Comparative Balance Sheets December 31, 2006, 2005, and 2004
2006 2005 2004
Assets Current assets . . $ 48,480 $ 37,924 $ 50,648
Long-term investments . . 0 500 3,720
Plant assets, net . . . . . . . .90,000 96,000 57,000
Total assets . . . . . . . . . .$138,480 $134,424 $111,368
Liabilities & Equity
Current liabilities . . . . . . .$20,200 $19,960 $19,480
Common stock . . . . . . . . .72,000 72,000 54,000
Other contributed capital. . . 9,000 9,000 6,000
Retained earnings . . . . . . . 37,280 33,464 31,888
Total liabilities and equity .$138,480 $134,424 $111,368
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.