Question
a partial balance sheet and income statement for King Corproation follow:
KING CORPORATION
Partial Balance Sheet
December 31,2009
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, 2009
Net sales $3,050,600
Miscellaneous income $45,060
$3,095,660
Cost 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
The trade receivables at December 31, 2008, were $280,000, net of an allowance of $8,000, for a gross receivables figure of $288,000. The Inventory at December 31,2008, was $565,000
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
KING CORPORATION
Partial Balance Sheet
December 31,2009
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, 2009
Net sales $3,050,600
Miscellaneous income $45,060
$3,095,660
Cost 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
The trade receivables at December 31, 2008, were $280,000, net of an allowance of $8,000, for a gross receivables figure of $288,000. The Inventory at December 31,2008, was $565,000
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
Answers
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
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
khulood
Related Questions
1)utilities expense, 2)accounts payable, 3)commissions,4)capital, 5)withdrawals.where do they appear...
Please Help. I can't get the balance sheet to balance out at at. I am frustrated!
Prepare a Tria...
Hi.
I never posted my work yet. Sorry. Here is the question then my answer which I cannot solve!...
Which is true about an income statement and a balance sheet?
All of these answers are correct....