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. 0 Required information The following information applies to the questions displayed below.) Summary Information from the financial statements of two companies competing in the

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0 Required information The following information applies to the questions displayed below.) Summary Information from the financial statements of two companies competing in the same Industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par valve Metained earnings Total liabilities and equity $ 21,000 34,400 84,740 5,900 310,000 $ 456,040 $ 35,000 $6,400 140, 500 7,700 311,400 $ 551,000 Data from the current year's income statement Sales Cost of foods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, not Merchandise Inventory Total assets Common stock, 55 par value Retained earnings $ 770,000 588,100 8,300 14,800 158,00 4.41 3.75 $920,200 652,500 12,000 25,464 239,296 4.65 3.92 $ 61,340 82.800 180,000 131,900 $ 456,040 $ 93,300 101,900 246,000 110,700 $ 551,000 $ 25,800 53,600 400,000 180,000 108, 100 $ 56,200 115,400 402, 500 246,000 73,268 Required: 10. For both companies compute the current ratio, (b) acid-test ratio. (c) accounts receivable turnover (Inventory turnover (@) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 16. Identify the company you consider to be the better short-term credit risk, Complete this question by entering your answers in the tabs below. Saved Total liabilities and equity $ 456,040 $ 551,000 Retained earnings 103, 100 73,268 Required: 10. For both companies compute the (current ratio. (b) acid test ratio. (accounts receivable turnover (o) inventory turnover (e) days sales in Inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 16. Identify the company you consider to be the better short-term credit risk. OF 2 Complete this question by entering your answers in the tabs below. 28-12 LA Current Ratio 1A Acid Test Ratio IA Acct Rec Turn 1A Invent Turnover 1A Days Salin A Days Sal Iny Uncol 18 short term For both companies compute the current ratio. (a) Company Numerator: Current Ratio Denominator: Barco Kyan Current Ratio Current ratio 0 to 1 Oto 1 ACTER 1A Acid Test Ratio > Required information [The following information applies to the questions displayed below.) Summary Information from the financial statements of two companies competing in the same industry follows. Barco Company Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long term notes payable Coanon stock, SS par value Retained earnings Total liabilities and equity $ 21,000 34,400 84,740 5,900 310.000 $ 456,040 Kyan Company Data from the current year's income statement Sales $ 35,000 Cost of goods sold 56,400 Interest expense 140,500 Income tax expense 7,700 Net Income 311,400 Basic earnings per share $ 551,000 Cash dividends per share Beginning of-year balance sheet data $ 93,300 Accounts receivable, net 101,000 Merchandise Inventory 246,000 Total assets 119,700 Connon stock, 35 par value $ 551,600 Retained earnings $ 770,000 588,100 8,300 14,800 158,800 4.41 3.75 $920,200 652,500 12,000 25,404 230,296 4.68 3.92 $ 61,340 12,800 180,000 131,900 $ 456,040 $ 25,800 53,600 408,000 180,000 108, 100 $ 56,200 115,400 402, 500 246,000 73,268 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover (@return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $90 per share, compute their (e) price earnings ratios and (1) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Total Habilities and equity 5.456,040 $ 551,000 Retained earnings 103, 100 73,263 2. 20. For both companies compute the fa profit margin tatlo (0) total asset turnover, (a) return on total assets, and (d) return on equity Assuming that each company's stock can be purchased at $90 per share, compute their (e price earnings ratios and ( dividend yields 2b. Identify which company's stock you would recommend as the better investment Part 2 of 2 Complete this question by entering your answers in the tabs below. 33 34 points 8 012738 Tum Reg 20 2A Prof Mar 2A Tot Asset 2A Reton Tot 2A Return on 2A Price Earn 2 Div Yield Ratio Assets Equity Ratio For both companies compute the profit margin ratio (a) Profit Margin Ratio Company Numerator Denominator Profit margin ratio Profit margin ratio Barco Kyan 2A Tot Asset Turn >

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