Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help please Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company
I need help please
Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $ 810,000 $887,200 650,500 Cash $18,500 $ 30,000 Cost of goods sold 596,100 Accounts receivable, net 33,400 58,400 Interest expense 8,700 19,000 Current notes receivable (trade) 9,000 8,800 Income tax expense 15,569 24,493 Merchandise Inventory 84,340 130,500 Net Income 189,631 193,207 Prepaid expenses 6,000 7,400 Basic earnings per share 5.27 4.27 330,000 305,400 Cash dividends per share Plant assets, net 3.75 402 Total assets $ 481,240, 540,500 $ $ 51,200 Liabilities and Equity Current liabilities 31,800 O 55,600 Beginning of year balance sheet data Accounts receivable, net $65,340 $ 92,300 Current notes receivable (trade) 82,800 99.000 Merchandise inventory 180,000 226,000 Total assets 0 Long-term notes payable Common stock. $5 par value 388,000 111,400 402.500 226,000 Retained earnings 153,100 123 200 Common stock, $5 par value 180,000 $ 481,240, 540,500 Retained earnings Total liabilities and equity 98,469 111,697 For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts (including notes) receivable tumover, () inventory tumover, (e) days' sales in inventory, and ( days' salos uncollected (Do not round intermediate calculations.) (a) Company Choose Numerator: Current assets 1 Barco 151,240 Kyan 235,100 Current Ratio Choose Denominator: Current liabilities $ 65,340 $ 92,300 = = Current Ratio Current ratio 2.3 to 1 2.5 to 1 Acid-Test Ratio (b) Company Cash Choose Numerator: Choose Denominator: Current liabilities 65,340 92,300 = = - Acid-Test Ratio Acid-test ratio Barco 18.500 30.0001 (c) Company Choose Numerator: Net sales Barco $ 810,000 Kyan Accounts Receivable Turnover Choose Denominator = Average accounts receivable, net - 1 Accounts Receivable Turnover Accounts receivable turnover O times 0 times (d) Company Choose Numerator: Cost of goods sold Barco 596,100 Kyan 650,500 Inventory Turnover I Choose Denominator: / Average inventory / 69,970 $ 120,950 Inventory Turnover Inventory turnover 8.5 times 5.4 times (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: * Days Cost of goods sold X 365 $ 596,100 1 $ 650,500 - - Merchandise inventory Days' Sales in Inventory Days' sales in inventory days days Barco Kyan Days' Sales Uncollected Choose Denominator: x Days 365 Company Choose Numerator: Current receivables, not Barco - Days' Sales Uncollected Days' sales uncollected 0 days days Kyan $ 887,200 m
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started