Selected comparative financial statements of Bennington Company follow.

BENNINGTON COMPANY

Comparative Income Statements

For Years Ended December 31, 2012, 2011, and 2010

2010 2012 2011

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, 2012, 2011, and 2010

2010 2011 2010

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 and Equity

Current liabilities . . . . . . . . . . . . . . . $ 20,200 $ 19,960 $ 19,480

Common stock . . . . . . . . . . . . . . . . . 72,000 72,000 54,000

Other paid-in 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. (Round ratio amounts to one decimal.)

2. Express the income statement data in common-size percent. (Round percent to two decimals.)

3. Express the balance sheet data in trend percent with 2010 as the base year. (Round percent to two

decimals.)

Analysis Component

4. Comment on any significant relations revealed by the ratios and percent computed.