A partial balance sheet and income statement for King Corporation follow:KING CORPORATIONPartial…

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A partial balance sheet and income statement for King Corporation follow:KING CORPORATIONPartial Balance SheetDecember 31, 2009AssetsCurrent assets:Cash …………………….$ 33,493Marketable securities ………………215,147Trade receivables, less allowance of $6,000 ………255,000Inventories, LIFO ………………..523,000Prepaid expenses ………………..26,180Total current assets …………….$1,052,820LiabilitiesCurrent liabilities:Trade accounts payable …………….$ 103,689Notes payable (primarily to banks) and commercial paper ….210,381Accrued expenses and other liabilities ………..120,602Income taxes payable ………………3,120Current maturities of long-term debt ………….22,050Total current liabilities ………………$ 459,842KING CORPORATIONPartial Income StatementFor Year Ended December 31, 2009Net sales ……………….$3,050,600Miscellaneous income …………..45,060$3,095,660Costs and expenses:Cost of sales ……………..$2,185,100Selling, general, and administrative expenses …….350,265Interest expense ……………….45,600Income taxes ……………….300,000 2,880,965Net income ……………….$ 214,695Required Compute the following:a. Working capitalb. Current ratioc. Acid-test ratiod. Cash ratioe. Days’ sales in receivablesf. Accounts receivable turnover in daysg. Days’ sales in inventoryh. Inventory turnover in daysi. Operating cycleView Solution:
A partial balance sheet and income statement for King Corporatio