Question
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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