P6-11
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:
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, 2011
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
Note: The trade receivable at December 31, 2010, were $280,000, net of an allowance of
$8,000, for gross receivables figure of $288,000. The inventory at December 31, 2010 was $565,000.
Compute the following:
a. Working capital				f. Accounts receivable turnover in days
b. Current ratio				g. Days' sales in inventory
c. Acid-test ratio				h. Inventory turnover in days
d. Cash ratio				i. Operating cycle
e. Days' sales in receivables