Managerial Accounting: E14-7 Bennis Company has the following comparative balance sheet data

Managerial Accounting

E14-7
Bennis Company has the following comparative balance sheet data.
BENNIS COMPANY
Balance Sheets
December 31
2012 2011
Cash 15,000 30,000
Receivables (net) 70,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000
345,000 320,000
Accounts payable 50,000 60,000
Mortgage payable (15%)100,000 100,000
Common stock, 10 par 140,000 120,000
Retained earnings 55,000 40,000
345,000 320,000

Additional information for 2012:
1. Net income was 25,000.
2. Sales on account were 410,000. Sales returns and allowances were 20,000.
3. Cost of goods sold was 198,000.
4. The allowance for doubtful accounts was 2,500 on December 31, 2012, and 2,000 on December 31, 2011.

Compute the following ratios at December 31, 2012. (Round answers to 1 decimal place, e.g. 10.5.)
a. Current ratio
b. Acid-test ratio
c. Receivables turnover
d. Inventory turnover
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