ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252 ssment Saved Summary information from the financial statements of two companies competing in the same...

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ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252 ssment Saved Summary information from the financial statements of two companies competing in the same industry follows. Data from the current year-end balance sheets Assets Cash $ 22,500 $ 36,000 Accounts receivable, net 40,400 57,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities. Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 84,740 136,500 Income tax expense 5,400 7,000 Net income 320,000 308,400 Basic earnings per share Cash dividends per share Barco Company Kyan Company Barco Company Kyan Company Data from the current year's income statement Sales Cost of goods sold Interest expense $760,000 587,100 8,600 $ 883,200 650,500 12,000 14,608 24,383 149,692 196,317 3.40 4.54 $473,040 $ 545,300 3.78 3.95 Beginning-of-year balance sheet data $ 67,340 78,800 220,000 106,900 $ 96,300 111,000 Accounts receivable, net $ 27,800 $ 51,200 Merchandise inventory 63,600 115,400 216,000 Total assets 418,000 392,500 122,000 $473,040 $ 545,300 Common stock, $5 par value Retained earnings 220,000 216,000 123,528 96,323 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (5) 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. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn Inv 1A Invent 1A Days Sal in 1A Days Sal Turnover Uncol 18 short term For both companies compute the current ratio. Current Ratio Company Numerator: Denominator: Current assets Current liabilities Barco $ 153,040/ $ Kyan $ 236,900 / $ 67,340- 96,300 Current Ratio Current ratio 2.3 to 1 2.5 to 1 C1A Current Ratio 1A Acid Test Ratio > ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252 ssment Saved Summary information from the financial statements of two companies competing in the same industry follows. Data from the current year-end balance sheets Assets Cash $ 22,500 $ 36,000 Accounts receivable, net 40,400 57,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities. Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 84,740 136,500 Income tax expense 5,400 7,000 Net income 320,000 308,400 Basic earnings per share Cash dividends per share Barco Company Kyan Company Barco Company Kyan Company Data from the current year's income statement Sales Cost of goods sold Interest expense $760,000 587,100 8,600 $ 883,200 650,500 12,000 14,608 24,383 149,692 196,317 3.40 4.54 $473,040 $ 545,300 3.78 3.95 Beginning-of-year balance sheet data $ 67,340 78,800 220,000 106,900 $ 96,300 111,000 Accounts receivable, net $ 27,800 $ 51,200 Merchandise inventory 63,600 115,400 216,000 Total assets 418,000 392,500 122,000 $473,040 $ 545,300 Common stock, $5 par value Retained earnings 220,000 216,000 123,528 96,323 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (5) 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. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn Inv 1A Invent 1A Days Sal in 1A Days Sal Turnover Uncol 18 short term For both companies compute the current ratio. Current Ratio Company Numerator: Denominator: Current assets Current liabilities Barco $ 153,040/ $ Kyan $ 236,900 / $ 67,340- 96,300 Current Ratio Current ratio 2.3 to 1 2.5 to 1 C1A Current Ratio 1A Acid Test Ratio >