$ 214,695 A partial balance sheet and income statement for King Corporation foll
ID: 2358065 • Letter: #
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$ 214,695
A partial balance sheet and income statement for King Corporation follow: KING CORPORATION Partial Balance Sheet 31-Dec-11 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: 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 iabilities $ 459,842 KING CORPORATION Partial Income Statement For the year ended December 31, 2011 Net Sales $ 3,050,600 Miscellaneious Income 45,060 $ 3,095,660 Costs and expenses: Cost of sales 2,185,100 Selling, general, and adminsitrative expenses $ 350,265 Interest expense 45,600 Income taxes $ 300,000 2,880,965 Net income$ 214,695
Required Compute the following: a. Working Capital b Current ratio c. Acid test d. Cash ratio e. Days sales in recievables f. Accounts receivable turnover in days g. Days sales inventory h. Inventory turnover in days i. Operating cycleExplanation / Answer
For Year Ended December 31, 2007 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, 2006, were $280,000, net of an allowance of $8,000, for a gross receivables figure of $288,000. The inventory at December 31, 2006, was $565,000.
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