Financial Statment Analysis

"Student Name "Malia Behm " Class : ACC 226 " Problem 17-01A "BENNINGTON COMPANY "Current Ratios "Assets "Liabilities "Ratio "December 31 , 2006 "48480 "20200 "2 .4 "- Correct "December 31 , 2005 "37924 "19960 "1 .9 "- Correct "December 31 , 2000 "50648 "19480 "2 .6 "- Correct "BENNINGTON COMPANY "Common-Size Comparative Income Statement "For Years Ended December 31 , 2006 , 2005 , and 2004 "2006 "2005 "2004 "Sales "1 "1 "1 "Cost of goods sold "0 .602 "0 .625 "0 .1563 "Gross profit from sales "0 .398 "0 .375 "0 .5781 "Selling expenses "0 .2703 "0 .138 "0 .132 "Administrative expenses "0 .86486 "0 .088 "0

.39453 "Total expenses "0 .1351 "0 .226 "0 .2145 "Income before taxes "0 .8649 "0 .149 "0 .1455 "State and federal income taxes "0 .031 "0 .0305 "0 .0295 "Net income "0 .8649 "0 .1185 "0 .116 "BENNINGTON COMPANY "Balance Sheet Data in Trend Percentages "December 31 , 2006 , 2005 , and 2004 "2006 "2005 "2004 "Assets "Current assets "0 .2723 "0 .2292 "1 "Long-term investments "- "0 .0538 "1 "Plant and equipment "1 .105 "1 .579 "1 "Total assets "1 .21 "1 .375 "1 "Liabilities Stockholders ' Equity "Current liabilities "1 .628 "1 .419 "1 "Common stock "1 .333 "1 .333 "1 "Other contributed capital "1 .5 "1 .5 "1 "Retained earnings "1 .481 "1 .151 "1 "Total liabilities and equity "1 .21 "1 .375 "1 "Part 4 : Comment on any significant relations revealed " by the ratios and percents computed "Any minor or major change in the ratios must reflect in the comparitive analysis as well as in the trend analysis .We can examine the ratios and their impact and responsivness in the percentage Afterwards we are in a position to make interpertation on that particular ground .If any change in the revenue recognition method ,or in the valuation of inventory or in the depreciation method must reflect in the Net Income and this may lead to a decrease or increase in the Owner 's Equity (Retained Earning "Given Data P17-01A "BENNINGTON COMPANY "Comparative Income Statement 000 "For Years Ended December 31 , 2006 , 2005 , and 2004 "2006 "2005 "2004 "Sales "444000 "340000 "236000 "Cost of goods sold "267288 "212500 "151040 "Gross profit from sales "176712 "127500 "84960 "Selling expenses "62694 "46920 "31152 "Administrative expenses "40137 "29920 "19470 "Total expenses "102831 "76840 "50622 "Income before taxes "73881 "50660 "34338 "State and federal income taxes "13764 "10370 "6962 "Net income "60117 "40290 "27376 "BENNINGTON COMPANY "Comparative Balance Sheets 000 "December 31 , 2006 , 2005 , and 2004 "2006 "2005 "2004 "Assets "Current assets "48480 "37924 "50648 "Long-term investments "0 "500 "3720 "Plant and equipment "90000 "96000 "57000 "Total assets "138480 "134424 "111368 "Liabilities and Stockholders ' Equity "Current liabilities "20200 "19960 "19480 "Common stock "72000 "72000 "54000 "Other contributed capital "9000 "9000 "6000 "Retained earnings "37280 "33464 "31888 "Total liabilities and equity "138480 "134424 "111368 "Check figure (3 ) 2006 , Total assets trend "1 .2434 "Student Name "Malia Behm "Class "ACC 226 "Problem 17-04A "McCORD CORPORATION "Ratios (1 ) Current ratio "3 .095 "to 1 "- Correct (2 ) Acid-test...