| 1. Summary information from the financial statements of two companies competing in the same industry follows. 
| 1.1 | For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. | | | | | | (a) | Current Ratio | | Company | Choose Numerator: | / | Choose Denominator: | = | Current Ratio | | | Current assets | / | Current liabilities | = | Current ratio | | Barco | | / | | = | 0 | to 1 | | Kyan | | / | | = | 0 | to 1 | | |
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| | | (b) | Acid-Test Ratio | | Company | Choose Numerator: | | Choose Denominator: | = | Acid-Test Ratio | | | Cash | + | Short-term investments | + | Current receivables | / | Current liabilities | = | Acid-test ratio | | Barco | | + | | + | | / | | = | 0 | to 1 | | Kyan | | + | | + | | / | | | 0 | to 1 | | | | | | (c) | Accounts Receivable Turnover | | Company | Choose Numerator: | / | Choose Denominator: | = | Accounts Receivable Turnover | | | Net sales | / | Average accounts receivable, net | = | Accounts receivable turnover | | Barco | | / | | = | 0 | times | | Kyan | | / | | = | 0 | times | | (d) | Inventory Turnover | | Company | Choose Numerator: | / | Choose Denominator: | = | Inventory Turnover | | | Cost of goods sold | / | End of year total inventory | = | Inventory turnover | | Barco | | / | | = | 0 | times | | Kyan | | / | | = | 0 | times | | | | | | (e) | Days Sales in Inventory | | Company | Choose Numerator: | / | Choose Denominator: | x | Days | = | Days Sales in Inventory | | | Merchandise inventory | / | Cost of goods sold | x | 365 | = | Days sales in inventory | | Barco | | / | | x | | = | 0 | days | | Kyan | | / | | x | | = | 0 | days | | | | | | | (f) | Days' Sales Uncollected | | Company | Choose Numerator: | / | Choose Denominator: | x | Days | = | Days' Sales Uncollected | | | Current receivables, net | / | Net sales | x | 365 | = | Days' sales uncollected | | Barco | | / | | x | | = | 0 | days | | Kyan | | / | | x | | = | 0 | days | | | 2.1 | For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that share and each companys stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (f) dividend yield | | | | | (a) | Profit Margin Ratio | | Company | Choose Numerator: | / | Choose Denominator: | = | Profit margin ratio | | | | Net income | / | Net sales | = | Profit margin ratio | | | Barco | | / | | = | 0 | % | | Kyan | | / | | = | 0 | % | | | | | | (b) | Total Asset Turnover | | Company | Choose Numerator: | / | Choose Denominator: | = | Total Asset Turnover | | | Net sales | / | Average total assets | = | Total asset turnover | | Barco | | / | | = | 0 | times | | Kyan | | / | | = | 0 | times | | | | | | (c) | Return on Total Assets | | Company | Choose Numerator: | / | Choose Denominator: | = | Return on Total Assets | | | | Net income | / | Average total assets | = | Return on total assets | | | Barco | | / | | = | 0 | % | | Kyan | | / | | = | 0 | % | | | | | | (d) | Return On Common Stockholders' Equity | | Company | Choose Numerator: | / | Choose Denominator | = | Return On Common Stockholders' Equity | | | | Net income | - | Preferred dividends | / | | = | Return on common stockholders' equity | | | Barco | | - | | / | | = | 0 | % | | Kyan | | - | | / | | = | 0 | % | | | | | | (e) | Price-Earnings Ratio | | Company | Choose Numerator: | / | Choose Denominator: | = | Price-Earnings Ratio | | | Market price per common share | / | Earnings per share | = | Price-Earnings Ratio | | Barco | | / | | = | 0 | times | | Kyan | | / | | = | 0 | times | | | | | | (f) | Dividend Yield | | Company | Choose Numerator: | / | Choose Denominator: | = | Dividend Yield | | | | Annual cash dividends per share | / | Market price per share | = | Dividend Yield | | | Barco | | / | | = | 0 | % | | Kyan | | / | | = | 0 | % | | | | | | | | | |
Summery information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco. yan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement 880,200 Assets 770,000 Sales 632,500 Cash 19,500 34,000 Cost of goods sold 585,100 Accounts receivable, net 7,900 37,400 57,400 nterest expense 13,000 14,800 24,300 Current notes receivable (trade) 9.100 7,200 Income tax expense Merchandise inventory 84,440 132,500 Net income 162,200 210,400 Prepaid expenses 5.000 6,950 Basic earnings per share 304,400 290.000 Cash dividends per share 4.51 5.11 Plant assets, net 3.81 3.93 445,440 $542,450 Beginning-ofyear balance sheet data Liabilities and Equity Accounts receivable, net 29,800 54,200 61,340 93,300 Current notes receivable (trade) Current liabilities 80,800 101.000 Merchandise inventory 55,600 107,400 Long-term notes payable 206,000 382,500 398.000 Common stock, $5 par value 180.000 Total assets 206,000 180,000 123,300 142,150 Common stock, $5 par value Retained earnings 93,600 445,440 $542,450 Retained earnings Total liabilities and equity 98,300
