Bago Barco Ryan Company Company Data from the current year end balance sheets Assets Cashi $ 18,500 $ 36,000 Accounts receivable, net 35,400 51,400 Merchandise inventory 84,410 132,500 Prepaid expenses 5,800 7,800 Plant assets, net 310,000 307.400 Total aseta $154,140 $535, 100 Data from the current year's income statement Sales $780,000 0012200 Coat of goods sold 590, 100 645,500 Interest expense 7.000 17,000 Income tax expense 16,992 24.627 Net income 167, 108 191,378 Basic earnings per abate 3.80 4.23 Cash dividends per share 3.78 3.91 Liabilities and Ruity Current liabilities Long-term notes payable Common stock, 65 par value Retained earnings Total liabilities and equity $ 61,340 $ 99,300 80, 800 109,000 220,000 226,000 92.000 100.000 $454,110 9535,100 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 5 par value Retained earning $ 2,200 $ 58,200 61,600 107, 100 398,000 372.00 220,000 226,000 91,212 37.515 Problem 17-5A Part 1 Required: 1a. For both companies compute the (a current ratio, (b) acid-test ratio, id accounts receivable turnover, (inventory turnover le days sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 18 short term 1A Current Ratio 1A Acid Test Ratio IA Acct Rec Turn 1A Days Sal in 1A Days Sal Uncol 1A Invent Turnover thy For both companies compute the acid-test ratio. Choose Numerator Short-term investments 5 0] + s 01 + Company Cash Barco s Kyan $ Acid Test Ratio Choose Denominator Current receivables Current liabilities 28,000S 58.2003 Acid last Ratio Acid test ratio 0.8 to 1 0.9 0 1 61.340 99 300 18.500 36.000+ Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 10,500 $ 36,000 Accounts receivable, net 35, 400 51.400 Merchandise inventory 84,440 132,500 Prepaid expenses 5,800 7,800 Plant assets, net 310,000 307.400 Total assets $454,140 $535, 100 Barco Kynn Data from the current years indose statement Company Ceep any Sales $700,000 $881,200 Coat of goods sold 590,100 645.500 Interest expense 7,800 17,000 Income tax expense 14,992 24,527 Net income 167, 108 191, 373 Basic earnings per share 3.80 4.23 Cash dividends per share 3.78 3.94 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 61,340 $ 99, 300 Accounts receivable, net 80,000 109,000 Merchandise inventory 220,000 226,000 Total assets 92,000 100,800 Common stock, $5 par value $454,140 $535,100 Retained earnings $ 28,800 $58.boo 61,600 107,400 398,000 372.00 220,000 226,000 91,212 87,515 Problem 17-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. ( accounts receivable turnover. (inventory turnover (c) days sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover. c) Company Choose Numerator: Net sales Accounts Receivable Turnover 1 Choose Denominator: Accounts Recevable Turnover Average accounts receivable, net Accounts receivable tumover O times - 0 times Barco Kyan Total assets JAU, UUV 307, 400 $454, 140 $535, 100 Basic earnings per share Cash dividends per share 167, 108 191,373 3. 4.23 3.94 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 99,300 80, 800 109,000 220,000 226,000 92,000 100, 800 $454,140 $535, 100 Beginning-of-year balance sheet data Accounts receivable, het Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 $ 50.200 61,600 107,400 390,000 372.500 220,000 226,000 91,212 87,515 Problem 17-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (d accounts receivable turnover (inventory turnover, (e) days sales in inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Acct Rec 1A Current Ratio 1A Invent Turnover 1A Acid Test Ratio 1B short term 1A Days Salin 1A Days Sal Iny Uncol Turn For both companies compute the inventory turnover. Company Choose Numerator: Cost of goods sold Inventory Turnover 1 Choose Denominator: Average inventory Inventory Turnover = Inventory tumover 0 times Barco - 0 times Merchandise inventory Prepaid expenses Plant assets, net Total assets 35,400 51,400 84,440 132,500 5,800 7,800 310,000 307, 400 $454,140 $535, 100 Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share 590, 100 2.300 14,992 167, 108 3.80 3.78 648,500 17,000 24,327 191.373 1.23 3.94 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 99, 300 80, 800 109,000 220,000 226,000 92,000 100, 800 $454, 140 $535, 100 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,00 $ 58,00 61, 600 107,400 398,000 372,500 220,000 226,000 91,212 87,515 Problem 17-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio. (accounts receivable turnover. (d) inventory turnover. (edays sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1B short term 1A Invent Turnover 1A Acct Rec Turn 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the days' sales in inventory. Days (e) Company Choose Numerator: Merchandise inventory Barco Kyan Days' Sales in Inventory . Choose Denominator: X Cost of goods sold X Days' Sales in Inventory Days' sales in inventory 0 days 0 days company Data from the current year-end balance sheets Assets Cash $ 10,500 $ 36,000 Accounts receivable, net 35, 400 51,400 Merchandise inventory 84,440 132,500 Prepaid expenses 5,800 7,800 Plant assets, net 310,000 307, 400 Total assets $454,140 $535, 100 Company Company Data from the current year's income statement Sales $780,000 801,200 Coat of goods sold 590, 100 648,500 Interest expense 7,800 17,000 Income tax expense 14,992 24,527 Net income 167, 100 191,373 Basic earnings per share 3.00 Cash dividende per share 3.70 3.94 2.23 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 65 par value Retained earnings Total liabilities and equity $ 61,3406 99, 300 80,000 109,000 220,000 226,000 92,000 100, 800 $454,140 $535, 100 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total asseta Common stock, $5 par value Retained earnings $ 28,300 50,200 61, 600 107, 400 398,000 372,500 220,000 226,000 91,212 Problem 17-5A Part 1 Required: 10. For both companies compute the (a) current ratio, (b) acid test ratio, (accounts receivable turnover (c) inventory turnover (e days sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk Complete this question by entering your answers in the tabs below. 1A Current Ratio 1B short term 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the days' sales uncollected 0 CompanyChoose Numerator: Current receivables, net Barco Days Sales Uncollected I Choose Denominator: x Days I Net sales x 365 - Days Sales Uncollected Days' sales uncollected O days 0 days X Kyan