Balance sheet and income statement for king corporation

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Reference no: EM13881502

P 6-11 A partial balance sheet and income statement for King Corporation follow:

KING CORPORATION
Partial Balance Sheet
December 31, 2011
Assets
Current assets:
Cash	$ 33,493
Marketable securities	215,147
Trade receivables, less allowance of $6,000	255,000
Inventories, LIFO	523,000
Prepaid expenses	26,180
Total current assets	$1,052,820
Liabilities
Current liabilities:
Trade accounts payable	$ 103,689
Notes payable (primarily to banks) and commercial paper	210,381
Accrued expenses and other liabilities	120,602
Income taxes payable	3,120
Current maturities of long-term debt	22,050
Total current liabilities	$ 459,842
KING CORPORATION
Partial Income Statement
For Year Ended December 31, 2011
Net sales		$3,050,600
Miscellaneous income		45,060
		$3,095,660
Costs and expenses:
Cost of sales		$2,185,100
Selling, general, and administrative expenses		350,265
Interest expense		45,600
Income taxes		300,000
		2,880,965
Net income		$ 214,695
Note: The trade receivables at December 31, 2010, were $280,000, net of an allowance of $8,000, for a gross receivables figure of $288,000. The inventory at December 31, 2010, was $565,000.

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Required Compute the following:

a. Working capital
b. Current ratio
c. Acid-test ratio
d. Cash ratio
e. Days' sales in receivables
f. Accounts receivable turnover in days
g. Days' sales in inventory
h. Inventory turnover in days
i. Operating cycle

Reference no: EM13881502

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