Post ACC305 Assignment Unit 4 Ch6

| September 28, 2018

.blackboard.com/webapps/assignment/uploadAssignment?content_id=_2506283_1&course_id=_60565_1&assign_group_id=&mode=view”>Assignment Unit 4 Ch6P6- 7 Page 252P6-11 Page 253-254.0pt”>P 6-11 Apartialbalance
sheetandincome
statementforKingCorporationfollow:KINGCORPORATION
PartialBalance Sheet
December31, 2009AssetsCurrentassets:

Cash

$
33,493

Marketablesecurities

215,147

Tradereceivables,lessallowanceof$6,000

255,000

Inventories,LIFO

523,000

Prepaidexpenses

26,180

Totalcurrent
assets

$1,052,820

Liabilities

Tradeaccountspayable

$
103,689

Notespayable(primarilytobanks)and
commercialpaper

210,381

Accruedexpensesand
otherliabilities

120,602

Incometaxespayable

3,120

Currentmaturitiesof
long-termdebt

22,050

Totalcurrentliabilities

$ 459,842

Currentliabilities:KINGCORPORATION
PartialIncomeStatementForYearEndedDecember
31, 2009Netsales
$3,050,600Miscellaneousincome
45,060.gif”>$3,095,660Costsandexpenses:

Cost
ofsales

$2,185,100

Selling,general,andadministrativeexpenses

350,265

Interestexpense

45,600

Incometaxes

300,000

2,880,965

Netincome

$ 214,695

Note:ThetradereceivablesatDecember31,2008,were$280,000,netofanallowanceof$8,000, foragrossreceivablesfigure
of$288,000.TheinventoryatDecember31,2008,was$565,000.RequiredComputethefollowing:

a.

Workingcapital

f. Accountsreceivable vturnover

b.

Currentratio

g. time inventory

c.

Acid-testratio

h. Inventoryturnoverin
days

e.

P6-18 Page 256P6-19 Page 256-257 *When calculating the ratio for working capital, please assume the numbers are averages.J.A. Appliance Company has supplied you with the following data regarding working capital and sales for the years 2009, 2008, and 2007.200920082007Working capital$270,000$260,000$240,000Sales$650,000$600,000$500,000Industry average for the ratio sales to working capital4.10 times4.05 times4.00 timesRequireda. Compute the sales to working capital ratio for each year.b. Comment on the sales to working capital ratio for J.A. Appliance in relation to the industry average and what this may indicate.

Get a 30 % discount on an order above $ 100
Use the following coupon code:
RESEARCH
Order your essay today and save 30% with the discount code: RESEARCHOrder Now
Positive SSL