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Can anyone solve this accounting question? 1 Part 1 of 2 Required information [ The following information applies to the questions displayed below. ] Summary
Can anyone solve this accounting question?
Part of
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.
tabletableBarcoCompanytableKyanCompanytableData from the current yearendbalance sheetsAssetsCash$$Accounts receivable, net,Merchandise inventory,Prepaid expenses,Plant assets, net,Total assets,$$Liabilities and EquityCurrent liabilities,$$Longterm notes payable,Common stock, $ par value,Retained earnings,Total liabilities and equity,$$
tableData from the current year's income,tableBarcoCompanyKyan CompanystatementSales$Cost of goods sold,Interest expense,Income tax expense,Net income,Basic earnings per share,Cash dividends per share,,Beginningofyear balance sheet data,$$Accounts receivable, net,Merchandise inventory,Total assets,Common stock, $ par value,,Retained earnings,,
Required:
a For both companies compute the a current ratio, b acidtest ratio, c accounts receivable turnover, inventory turnover, e days' sales in inventory, and f days' sales uncollected.
Note: Do not round intermediate calculations.
b Identify the company you consider to be the better shortterm credit risk.
Complete this question by entering your answers in the tabs below.
tabletableA CurrentRatiotableA Acid TestRatiotableA Acct RecTurntable A InventTurnovertableA Days Sal inInvtableA Days SalUncolB short term
tableaCurrent RatioCompanyNumerator:,Denominator:,Current RatioCurrent ratioBarcoto Kyanto
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