Financial statements for Benson Company follow. BENSON COMPANY Balance Sheets As of December 31 2019 2018...

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Financial statements for Benson Company follow. BENSON COMPANY Balance Sheets As of December 31 2019 2018 Assets Current asse

Liabilities and Stockholders Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable 17,200 8

Stockholders equity Preferred stock, (par value $10, 5% cumulative, non-participating; 8,000 shares authorized and issued) C

BENSUN COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 2018 Revenues Sales (net) $260

Required Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented do not use averages when calc

Check my work o. Return on equity. (Round your answers to 2 decimal places.) p. Earnings per share. (Round your answers to 2

i. Debt to equity ratio times times j. Number of times interest earned k. Plant assets to long-term debt I. Net margin m. Ass

business accounting

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Answer 1

Answer #1

	2019	2018	FORMULA
WORKING CAPITAL	[238800-130000] 108800	104300 [205800-101500]	CURRENT ASSETS - CURRENT LIABILITIES
CURRENT RATIO	1.84 [238800/130000]	2.03 [205800/101500]*100	CURRENT ASSETS/ CURRENT LIABILITIES
QUICK RATIO	0.63 [17500+20300+44000]/130000	0.55 [13500+6300+36000]/101500	[CASH +MARKETABLE SECURITIES+ACCOUNT RECEIVABLES ] / CURRENT LIABILITIES
RECEIVABLE TURNOVER	6.5 [260000]/(44000+36000)/2]	6.57 [240000]/[37000+36000]/2]	[NET CREDIT SALES /AVERAGE ACCOUNTS RECEIVABLES]
AVERAGE DAYS TO COLLECT ACCOUNT RECEIVABLE	56 [365/6.5]	55 [365/6.57]	365 DAYS / ACCOUNT RECEIVABLE TURNOVER RATIO
INVENTORY TURNOVER	0.98 [130000]/ [(129000+137000)]/2	0.8 [112000]/[(143000+137000)]/2	COST OF GOODS SOLD/ AVERAGE INVENTORY
NUMBER OF DAYS TO SELL INVENTORY	372.44 [365/0.98]	456.25 [365/0.8]	365/INVENTORY TURNOVER RATIO OR [AVERAGE INVENTORY/ COST OF GOODS SOLD] *365DAYS
DEBT TO ASSET RATIO	ROUNDED OFF TO 51% [287000/564800]*100	50% [253500/504800]*100	SHORT TERM +LONG TERM DEBT / TOTAL ASSET
TIMES INTEREST EARNED	9.06 [33700+38000+8900]/8900	9.95 [35500+37000+8100]/8100	EARNINGS BEFORE INTEREST AND TAXES/ INTEREST

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