Check my 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. Kyan KM Data from the current year-end balance sheets Assets Cash Accounts receivable. net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets 5.11 Barco Company Company Harco Data from the current year's income statement Company Company Sales 5770,000 $30,200 $ 19,500 $ 34,000 cost of goods sold 585,100 632.500 37.400 57,400 Interest expense 7,902 13,000 9,120 7,2ee Income tax expense 14,80 24. 84,440 132,580 Net income 162,200 210,000 5.000 6,952 Basic earnings per share 4.51 290.000 304,400 Cash dividends per share 3.01 3.93 $445,440 $542, 450 Beginning-of-year balance sheet data Accounts receivable, net $ 29,0 $54,220 $ 61,340 $ 93, 320 Current notes receivable (trade) 80,60e 101,200 Merchandise inventory 55,620 17.00 398,000 382,500 180,000 205,000 Total assets 182,000 206.10 Common stock, 55 par value 123,300 142,150 98,320 93, 5445,440 5542,450 Retained earnings Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Required: 1o. For both companies compute the (a current ratio, (b) acid-test ratio. (daccounts (including notes) receivable turnover (on inventory turnover (e) days' sales in inventory, and (6 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. CD 8 9 Next > of 9 TACT Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv 18 short term Uncol For both companies compute the acid-test ratio. (b) Acid-Test Ratio = Company Choose Numerator: Choose Denominator Acid-Test Ratio Acid-test ratio es 1 = to 1 Barco Kyan .. + 2 to 1 1A Acet Rec Turn > Complete this question by entering your answers in the tabs below. 1A Current Ratio 1 A Acid Test 1A Acct Rec Ratio Turn 1A Invent A bays Sat in 1A Days Sal 18 short term Turnover Iny Uncol For both companies compute the days' sales in inventory. (0) Days Sales In Inventory Choose Denominator: X Days 1 Choose Numerator: Company Dayu' Sales in Inventory Days in inventory days / 1 days Barco Kyan X / 1A Days Sal Uncol > 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 Salin 1A Days Sal Uncol 1B short term Turnover Inv Identify the company you consider to be the better short-term credit risk. Better short-term credit risk
