Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,000 $ 31,000 Accounts receivable, net 36,400 51,400 Merchandise inventory 84,240 140,500 Prepaid expenses 6,100 7,550 Plant assets, net 340,000 304,400 Total assets $485,740 $534,850 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $881,200 Cost of goods sold 591,100 646. see Interest expense 8,600 10,000 Income tax expense 14,800 24.327 Net income 155,500 200,373 Basic earnings per share 4.09 4.07 Cash dividends per share 3.81 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 70, 340 $ 97,300 Accounts receivable, net 86,800 117,000 Merchandise inventory 190,000 246,000 Total assets 138,600 74,550 Common stock, 55 par value $ 485,740 5534,850 Retained earnings $ 29,800 $ 57.200 53,600 109,400 408,000 382.500 190,000 246,000 127,880 69.1993 ampany Choose Denominator: Cash Choose Numerator: Short-term investments $ Current liabilities Current receivables 29.800 / Acid-Test Ratio Acid-test ratio 0.7 to 1 to 1 $ 19.000 + $ 70,340 an $ 31,000+ $ 0 11 $ 97.300 (d) Inventory Turnover Company Choose Numerator: Choose Denominator: Inventory Turnover Inventory turnover 0 times Barco 17 = 0 times Kvan (e) Company Days' Sales in Inventory Choose Denominator: Choose Numerator: Days 11 X Days' Sales in Inventory Days' sales in inventory 0 days 0 days X = Barco Kyan (1) Company Choose Numerator: Days' Sales Uncollected Choose Denominator: X Days = Days' Sales Uncollected Days' sales uncollected 0 Barco days Kyan 0 days