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CAN SOMEONE ASSIST ME WITH THE FOLLOWING PLEASE? King Products Corporation King Products Corporation Statement of Financial Position (in thousands) June 30 Year 6 Year

CAN SOMEONE ASSIST ME WITH THE FOLLOWING PLEASE?

King Products Corporation

King Products Corporation

Statement of Financial Position

(in thousands)

June 30

Year 6

Year 5

Cash

$ 60

$ 50

Marketable securities (at market)

40

30

Accounts receivable (net)

90

60

Inventories (at lower of cost or market)

120

100

Prepaid items

30

40

Total current assets

$ 340

$280

Long-term investments (at cost)

50

40

Land (at cost)

150

150

Building (net)

160

180

Equipment (net)

190

200

Patents (net)

70

34

Goodwill (net)

40

26

Total long-term assets

$ 660

$630

Total assets

$1,000

$910

Notes payable

$ 46

$ 24

Accounts payable

94

56

Accrued interest

30

30

Total current liabilities

$ 170

$110

Notes payable, 10% due 12/31/Year 12

20

20

Bonds payable, 12% due 6/30/Year 15

30

30

Total long-term debt

$ 50

$ 50

Total liabilities

$ 220

$160

Preferred stock-5% cumulative, $100 par, non-participating, authorized, issued and outstanding, 2,000 shares

200

200

Common stock-$10 par, 40,000 shares authorized, 30,000 shares issued and outstanding

300

300

Additional paid-in capital--common

150

150

Retained earnings

130

100

Total shareholders' equity

$ 780

$750

Total liabilities and shareholders' equity

$1,000

$910

King Products Corporation

Income Statement

For the year ended June 30

(in thousands)

Year 6

Net sales

$600

Costs and expenses

Cost of goods sold

440

Selling, general, and administrative

60

Interest expense

10

Income before taxes

$ 90

Income taxes

45

Net income

$ 45

5. Refer to the King Products Corporation example. King Products Corporation's inventory turnover for the fiscal year ended at June 30, Year 6, was

a.

3.7

b.

4.0

c.

4.4

d.

5.0

e.

none of the above

6. Refer to the King Products Corporation example. King Products Corporation's accounts receivable turnover for the fiscal year ended at June 30, Year 6, was

a.

4.9

b.

5.9

c.

6.7

d.

8.0

e.

none of the above

7. Refer to the King Products Corporation example. King Products Corporation's average collection period for the fiscal year ended at June 30, Year 6, using a 360-day year, was.

a.

36 days

b.

45 days

c.

54 days

d.

61 days

e.

none of the above

8. Refer to the King Products Corporation example. King Products Corporation's quick (acid test) ratio at June 30, Year 6, was

a.

0.6

b.

1.1

c.

1.8

d.

2.0

e.

none of the above

9. The traditional use of the term _____ financial statements refers to projected financial statements based on some set of assumptions about the future. One set of assumptions might be that historical patterns (for example, growth rates or rates of return) will continue.

a.

what-if

b.

estimated

c.

Planned

d.

pro forma

e.

Future

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