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2 Part 1 of 2 Required information [The following information applies to the questions displayed below] Summary information from the financial statements of two
2 Part 1 of 2 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. 33.33 points Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income Assets Sales Cash $ 22,000 $ 34,000 01286 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Long-term notes payable Common stock, $5 par value Retained earnings Accounts receivable, net 40,400 51,400 Merchandise inventory 84,640 136,500 5,300 7,650 Cost of goods sold Interest expense Income tax expense Net Income 590,100 5891,200 632,500 7,700 15,377 11,000 24,603 186,823 223,097 320,000 307,400 Basic earnings per share 4.92 4.73 $472,340 $ 536,950 Cash dividends per share 3.82 1.97 Beginning of year balance sheet data Current liabilities $60,340 $92,100 Accounts receivable, net $30,000 $51,200 79,000 100,000 107,000 236,000 Merchandise Inventory $1,500 113,400 Total assets 320,000 372,500 Total liabilities and equity 134,200 $472,340 101,450 $530,950 Common stock, $5 par value 190,000 236,000 Retained earnings 92.537 65,937 Required: 1a. For both companies compute the (a current ratio, (b) acid-test ratio, (d) accounts receivable turnover, (df inventory turnover (e) days sales in inventory, and (5 days' sales uncollected. (Do not round intermediate calculations.) tb. Identify the company you consider to be the better short-term credit risk Complete this question by entering your answers in the tabs below. Comant 1A Arid Test 13 1- A Pare al in 18. CO
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