when computing days' sales in inventory! Biscuss. P 6-11 A partial balance sheet and in partial balance sheet and income statement for King Corporation follow: KING CORPORATION Partial Balance Sheet Assets December 31, 2011 Current assets: $ 33,493 Cash 215,147 Marketable securities 255,000 Trade receivables, less allowance of $6,000 523,000 Inventories, LIFO 26,180 Prepaid expenses $1,052,820 Total current assets Liabilities Current liabilities: $ 103,689 Trade accounts payable 210,381 Notes payable (primarily to banks) and commercial paper 120,602 Accrued expenses and other liabilities 3,120 Income taxes payable 22,050 Current maturities of long-term debt 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 Costs 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 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 (continued) Liquidity of Short-Term Assets: Related Debt-Paying Ability (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