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Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440

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Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,448 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $889, 200 Cost of goods sold 585,100 632 560 Interest expense 7,900 13,000 Income tax expense 14,800 24 30e Net incone 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 55,600 107,480 398,000 382 580 180,000 206, 308 98,300 93 600 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (accounts receivable turnover (c) Inventory turnover, (edays 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. Inv 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Tum 10 short term Turnover Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: 1 Choose Denominator: Accounts Receivable Turnover Net sales Average accounts receivable, not Accounts receivable turnover Barco $ 770,000/ Otimes Kyan $ 880 200 41 times

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