Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 3 Part 02 Required information The following information applies to the questions displayed below! Summary information from the financial statements of two

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Check my work 3 Part 02 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 125 DO Sales w Barce Company Com Data from the current year-end balance sheets Data from the current years income statement Assets 720, 5919,20 Cach $20,500 $3,000 Cost of goods sold Sa, 100 650/50 Accounts receivable 12.4 $4,400 Interest mense 1,400 18,000 Merchandise inventory 14,540 140,540 Income tax expense 15,185 2537 Proin 6.000 7,050 Income 178, 315 235.124 Pant assets, et 0.00 Masle earnings per share 4.25 4.42 Total arts 550844 3544.350 cash dividends per share 3.73 3.17 Liabilities toity Beggo ya balance sheet data Current liabiti 1,40 5,00 Accounts receivable, not $ 28,00 55,200 Loter rote we 12,100 101,0 Merchandise Sventory 65,00 119.400 Como o vale 210,000 285,00 Total assets 420,000 422 50 Retained and 146 300 140. stock, 55 ar valor 210,000 286,000 Total tinand cauty 5500, 440 3544,758 Raid earnings 11.125 78290 Required: In. For both companies compute the current ratio cocid-test ratio, ( accounts receivable turnover oh Inventory tumovec a day! in inventory and chleuncolated Do not found intermediate calculations 3 Total liabilities and equity 5500, 440 $544,350 Retained earnings 176,325 78290 Part 1 of 2 Required: 1a. For both companies compute the current ratio, (b) acid test ratio, id accounts receivable turnover, (d) Inventory tumover, ( days' 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 1.25 Dois BOOK Complete this question by entering your answers in the tabs below. Petrucos 1A Current Ratio 1A Acid Test Ratio 1A Acct Ree Turn LA Inwent Turnover 1A Days Salin A Days Sal Inv Uncol 16 short term For both companies compute the add-test ratio, b) Company Acid Test Ratio Choose Numerator Choose Denominator 4. Barco +++ Acd Test Ratio Acid-test ratio oto 1 0 to 1 Kyan 1A Current Ratio 1A Act Rec Turn > Required: 1o. For both companies compute the current ratio. (b) acid-test ratio, accounts receivable turnover. (c) inventory turnover te days 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 ok Complete this question by entering your answers in the tabs below. ko 1A Current Ratio 1A Aud Test Ratio IA Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivablet Turger Choose Denominator: Accounts Receivable Turnover = Accounts receivable turnover O times Barco Otimes Kyan 3 Total liabilities and equity $588,440 $544,350 Retained earnings 126,325 7290 Part 1 of 2 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (coccounts receivable turnover, (c) inventory turnover. (e days sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk 1.25 points oBook Complete this question by entering your answers in the tabs below. Print Roferences 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Salin 1A Days Sal Tumover Inv Ung 18 short term For both companies compute the inventory tumover. (d) Inventory Tumayor Company Choose Numerator: Choose Denominator: Inventory Turnover Inventory turnover O times Barco Kyan 1 O times 3 Total liabilities and equity $501,440 $544,350 Retained earnings 126, 125 7029 Part 1 of 2 125 points Required: 1a. For both companies compute the (a current ratio, (b) acid-test ratio, (accounts receivable turnover, (h) inventory turnover ( days sales in inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk Book Complete this question by entering your answers in the tabs below. References 1A Current 1A Acid Test 1A Act Rec 1A Invent 1A Days Salin 1A Days Sal 18 short term Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales in inventory (e) Days Sales in lovetor Company Choose Numerator: Choose Denominator x Days Days' Sales in inventory Days sales in inventory Barco Kyan 1 0 days o days x 3 Total liabilities and equity $588,440 $544,350 Retained earnings 126,325 78 290 Part 1 of 2 Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, (d) inventory turnover (0) days 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 125 points eBook Complete this question by entering your answers in the tabs below. References Iny 1A Current 1A Acd Test 1A Act Rec 1A Invent 1A Days Salin 1A Days Sal 18 short term Ratio Ratio Turn Turnover Uncol For both companies compute the days' sales uncollected Dove Sales Uncollected Company Choose Numerator: Choose Denominator: x Days Days' Sales Uncollected Days' sales uncollected Barco / Kyan 1 o days o days 3 Total liabilities and equity $588,440 $544,350 Retained earnings 125,325 78296 Part 1 of 2 Required: 10. For both companies compute the (current ratio. (b) acid-test ratio, ad accounts receivable turnover, (d) inventory turnover (e) days sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. 1.25 points Book Complete this question by entering your answers in the tabs below. Print References 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol 18 short term Identify the company you cons to the better short-term credit risk. Better short-term credits art 2 of 2 2n. For both companies compute the (a) profit margin ratio. (b) total asset turnover (return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $70 per share, compute their (el price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Book Print 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Tum Assets erences 2A Ret On Com Stock ZA Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on total assets. 4/ c Company Choose Numerator Return on Total Assets Choose Denominator: = Return on Total Assets = Return on total assets 96 Barco Kyan 96 12 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (c) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $70 per share, compute their(e) price-earnings ratios and (dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets OG 2A Ret On Com Stock 2A Price Earn 2 Div Yield Ratio Reg 28 For both companies compute the return on common stockholders' equity. Retum On Common Stockholders' Equity Choose Denominator Company Choose Numerator Return On Common Stockholders Equity = Return On common stockholders equity Barco Kyan and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places 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 2A Ret On 2A Price Earn 2A Div Yield Ratio Turn Assets Com Stock Ratio Reg 28 Assuming that share and each company's stock can be purchased at $70 per share, compute their price earnings ratios. e) Price Earnings Ratio Company Choose Numerator: Choose Denominator: Price Earnings Ratio Price earnings ratio times Barco times Kyan 2A Ret On Com Stock 2A Div Yield > Part 2 of 2 2n. For both companies compute the () profit margin ratio, (b) total asset turnover, (return on total assets, and return on common stockholders' equity Assuming that each company's stock can be purchased at $70 per share, compute their (e price earnings ratios and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. 25 ints Complete this question by entering your answers in the tabs below. Book Print 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 20 Rofononces Assuming that each company's stock can be purchased at $70 per share, compute their dividend yields. Dividend Yield Choose Denominator Company Choose Numerator: Dividend Yield Dividend yield Barco Kyan 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover, ( return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $70 per share, compute their le price earnings ration and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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 Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 Identify which company's stock you would recommend as the better investment The better investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0136162185, 9780136162186

More Books

Students also viewed these Accounting questions

Question

=+2. Who is the audience?

Answered: 1 week ago