Barco Company Company Data from the current year-end balance abeets, Summary Information from the financial statements of two companies competing in the same industry follows. e Barco Assots Cash Accounts receivable, not Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 22,000 $38,000 30,400 66,400 84,540 130,500 5,600 300,000 7,050 310,400 $450,540 $546,350 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividende per share Beginning-of-year balance sheet Company Company $780,000 $800,200 597,100 640,500 8,500 14.000 14,992 24,300 169,400 201,400 4.24 4.46 3.75 3.95 data $ 67,340 $92,300 Accounts receivable, net $27,000 $ 56,200 #1,800 111,000 Merchandise inventory 55,600 109,400 200,000 226,000 Total assets 390,000 402,500 101,400 117,050 Total liabilities and equity $450,540 546,350 Common stock, $5 par value Retained earnings 200,000 226,000 $1,992 94,190 Problem 13-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d inventory turnover, (e) days sales in inventory, and (5 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 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Uncol Turnover Inv For both companies compute the current ratio. 18 short term 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 Data from the current year's income statement Assets Sales $780,000 $800,200 Cash $ 22,000 $38,000 Accounts receivable, net 30,400 60,400 Cost of goods sold Interest expense 587,100 640,500 0,500 14,000 Merchandise inventory 04,540 130,500 Income tax expense 14,992 24,300 50 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities. Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 5,600 7,050 Net income 169,408 201,400 300,000 310,400 Basic earnings per share 4.24 4.46 $450,540 546,350 Cash dividende per share 3.75 3.95 Beginning-of-year balance sheet data $67,3401 $ 92,300 Accounts receivable, net $27,000 $ 56,200 81,800 111,000 Merchandise inventory 55,600 109,400 200,000 226,000 Total assets 398,000 402,500 101,400 $450,540 $546,350 117,050 Common stock, $5 par value Retained earnings 200,000 226,000 01,992 94,190 Problem 13-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (6 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. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Equity 2A Price Earn 2A Div Yield Req 201 Ratio For both companies compute the profit margin ratio