Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I only need help with parts: E, F, G, H, I - please. P 6-11 A partial balance sheet and income statement for King Corporation

I only need help with parts: E, F, G, H, I - please.

image text in transcribed

image text in transcribed

image text in transcribed

P 6-11 A partial balance sheet and income statement for King Corporation follow: KING CORPORATION Partial Balance Sheet Assets December 31, 2011 Current assets: Cash Marketable securities Trade receivables, less allowance of $6,000 Inventories, LIFO Prepaid expenses Total current assets Liabilities Current liabilities: Trade accounts payable Notes payable (primarily to banks) and commercial paper Accrued expenses and other liabilities Income taxes payable Current maturities of long-term debt Total current liabilities $ 33,493 215,147 255,000 523,000 26,180 $1,052,820 $ 103,689 210,381 120,602 3,120 22,050 $ 459,842 KING CORPORATION Partial Income Statement For Year Ended December 31, 2011 Net sales Miscellaneous income $3,050,600 45,060 $3,095,660 Costs and expenses: Cost of sales Selling, general, and administrative expenses Interest expense Income taxes $2,185,100 350,265 45,600 300,000 2,880,965 $ 214,695 Net income 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. (P 6-11 CONTINUED) 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Harvey Rosen

6th International Edition

0071121234, 978-0071121231

More Books

Students also viewed these Finance questions