D 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. Darco Company Company Data from the current year-end balance sheets Assets Cash $ 20,500 $ 38,000 Rocounts receivable, net 39,400 52,400 Current notes receivable (trade) 10,000 7.000 Merchandise Inventory 84,840 142,500 Prepaid expenses 5,600 7,100 Plant assets, et 370.000 304,400 Total assets $530,340 $551,400 Marco Xyan Company Company Data from the current year's income statement Sales $810,000 5922,200 cost of goods sold 584,100 632,500 Interest expense 100 12.000 Income tax expense 15,569 25,459 Net Income 202,231 252,241 Basic earnings per share 5.62 5.50 Cash dividends per share Liabilities and Equity Current liabilities Long-ter notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 64,340 5103,300 78.800 101.000 180,000 226,000 202-2200 121.100 $530,340 $552,400 Beginning-of-year balance sheet data Accounts receivable, het Current notes receivable (trade) Merchandise inventory Total asset Common stock, 55 par value Retained earnings $ 31,800 $ 55,600 0 61.500 113,00 438,000 392,500 180,000 226,000 139,249 47,399 Required: 1a. For both companies compute the current ratio. (b) acid-test ratio. ( accounts (ncluding notes) receivable turnover (c) inventory turnover (days sales in inventory, and (days sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk Complete this question by entering your answers in the tabs below. Required: 10. For both companies compute the (current ratio. (b) acid-test ratio, ( accounts including notes) receivable turnover. () inventory turnover (@days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. Reg 10 1A Current IA Add Test 1A Acct Rec 1 Anvent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover In Uncol For both companies compute the current ratio Current Ratio Company Choose Numaralar Choose Denominator Current Ratio Current ratio Barco to 1 Kyan 101 14 Acid Test Ratio > Required: 1a. For both companies compute the (a current ratio. (b) acid-test ratio, ( accounts (including notes) receivable turnover, ( inventory turnover. (e) days' sales in inventory, and in days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1 Acct Rec Turn 1A Invent A Days Salin 1A Days Sal Turnover Inv Uncol Reg 10 Ratio For both companies compute the acid-test ratio, Acid-Test Ratio b) Company Choose Numerator Choose Denominator Acid-Test Ratio Acid-test ratio to 1 to Barco Kyan Bonect From w Check 207,200 121, 100 $530,340 5551,400 180,000 139.249 Retained earnings Total liabilities and equity Common stock, 55 par value Retained earnings 226,000 47.399 Required: 1a. For both companies compute the current ratio. (b) acid-test ratio, ( accounts (including notes) receivable turnover. (d) inventory turnover (e days sales in Inventory, and ( days soles uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test A Acct Rec Ratio Ratio 1A Invent 14 Days Salin 1A Days Sat Turnover Inv Uncol Reg 18 Tum For both companies compute the accounts (including notes) receivable tumover (c) Company Choose Numerator Accounts Receivable Tumover Choose Denominator: Accounts Receivable Turnover Accounts receivable tumover times times Barco Kyan Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio(accounts (including notes) receivable turnover (c) inventory turnover (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. 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 Uncol Inv Reg 1B For both companies compute the inventory turnover d) Company Choose Numeratori Inventory Turnover Choose Denominator: = Inventory Turnover - Inventory turnover times times Barco Kyan Total assets Liabilities and Equity Current liabilities Long-term notas payable Common stock. 35 par value Retained earnings Total liabilities and equity $530,340 5551,400 Beginning-of-year balance sheet data Accounts receivable, het $ 64,340 5103,100 Current notes receivable (trade) 70.000 103.000 Merchandise Swentory 10,000 226.000 Total assets 202,200 121.100 Connon stock, 55 par valve 5530.34 $551,400 Retained earnings $ 31,000 1 56.000 0 61,600 113.00 430.000 392,500 110.000 226,000 139,249 47.399 2a. For both companies compute the profit margin ratio, (o) total asset turnover (return on total assets, and return on common stockholders' equity Assuming that share and each company's stock can be purchased at $95 per share, compute their price. earnings ratios and dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 2b. Identity which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Sato 2A Pro Maro A Tot Asset 2A Reton Tot 2A Ret on 2A Price Cam Turn Ratio Com Stock 2A DIV Yield Reg 20 Assets quity For both companies compute the return on common stockholders' equity Return On Common Stockholders Cavity Company Choose Numerator Choose Denominator Return On Common Stockholders' Equity Rotum On common Mockout Barco Kyan 2A Raton To Art 2A Price Earn Ratio > Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $530, 340 $551,400 Beginning-of-year balance sheet data Accounts receivable, net $ 64,340 $103,300 Current notes receivable (trade) 78,800 101,000 Merchandise inventory 180,000 226,000 Total assets 207,200 121,100 Common stock. $5 par value $530,340 5551,400 Retained earnings $ 31,800 $ 56,200 0 0 62,600 113,400 438,000 392,500 180,000 226,600 139,249 47,399 2a. For both companies compute the () profit margin ratio. (b) total asset turnover (return on total assets, and (c) return on common stockholders' equity Assuming that share and each company's stock can be purchased at $95 per share, compute their (e) price- earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identity which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. 2A Rat On 21 Pro Maro 24 Tot Asset 2 Ret on Tot 2A Price Cam Ratio Reg 25 Turn Com Stock Assets ZA DIV Yield Ratio Equity Assuming that share and each company's stock can be purchased at $95 per share, compute their price-eamings ratios Price Earnings Ratio Choose Denominator: Company Choose Numerator: Price-Farnings Ratio - Price earnings ratio times mes Barco Kyan Check my w Total asset Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $530,340 5551,400 Beginning-of-year balance sheet data Accounts receivable, bet $ 64,340 $103,300 Current notes receivable (trade) 78.800 101.000 Merchandise inventory 180.000 226,000 Total assets 207,200 121,100 Comon stock, 55 par value $530,340 5551,400 Retained earnings 3.31,800 $ 56,1200 0 0 61.600 113.00 438,000 392,500 120.000 226,000 139,249 47,399 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (o return on total assets, and (c) return on common stockholders equity Assuming that share and each company's stock can be purchased at $95 per share, compute their (el price- earnings ratios and dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal places) 2b. Identity which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Reg 28 Assets 2A Pro Maro24 Tot Asset 2A Reton Tot A Ret On 2A Price Earn Com Stock Tum Ratio 2A Di Yield Equity Identify which company's stock you would recommend as the better investment This better investment