Bennis Company has the following comparative balance sheet data.

Additional information for 2011:1. 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, 2011, and $2,000 on December 31, 2010.InstructionsCompute the following ratios at December 31, 2011.(a) Current.(b) Acid-test.(c) Receivables turnover.(d) Inventoryturnover.

Transcribed Image Text:

BENNIS COMPANY Balance Sheets December 31 2011 2010 $ 15,000 $ 30,000 60,000 Cash Receivables (net) Inventories 70,000 60,000 200,000 50,000 Plant assets (net) 180,000 $345,000 $320,000 $50,000 100,000 $60,000 100,000 120,000 40,000 Accounts payable Mortgage payable (15%) Common stock, $10 par Retained earnings 140,000 55,000 $345,000 $320,000