Ratio Analysis
Not what you're looking for?
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
Purchase this Solution
Solution Summary
The solution computes Working capital, Current ratio, Acid-test ratio, Cash ratio, Days' sales in receivables, Accounts receivable turnover in days, Days' sales in inventory, Inventory turnover in days, Operating cycle.
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Operations Management
This quiz tests a student's knowledge about Operations Management
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking