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IThe following Information applies to the questions displayed below Summary information from the financial statements of two companies competing in the same industry follows. Barco

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IThe following Information applies to the questions displayed below Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $780,000 922,200 Cash Accounts recelvable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net $ 21,000 32.000 Cost of goods sold 593,100 644500 16,000 25.459 162,908 236,241 5.73 3.91 40,400 52.400 Interest expense 9,000 4.992 8.000 Income tax expense 84.840 132,500 Net income 6,000 360,000 7100 311.400 Basic earnings per share Cash dividends per share 4.29 3.75 Total assets $522.240 $543.400 Liabilities and Equity Current liabilities Long-term notes payable Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) $ 26,800 54.200 0 111.400 $63,340 $101.300 0 59.600 82,800 101,000 Merchandise inventory 206,000 Total assets Common stock, $5 par value Retained earnings Total liabilities and equity 418,000 412,500 186,100 135.100 Common stock, $5 par value 190,000 206,000 $522,240 $543.400 Retained earnings 165.692 59.951 Award: 2.00 points Required: 1.1 For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable tunover, (d) inventory turnover, (e) days' sales in inventory, and () days' sales uncollected. (Do not round intermediate calculations.) Company Choose Numerator:Choose Denominator:Crent Ratio Current ratio 0 to 1 0 to 1 Barco Kyan Company Choose Numerator: Choose Denominator: Acid-Test = Acid-test ratio Barco 0 to 1 Kyan 0 to 1 ny Choose Numerator: Choose Denominator: ACcounts Receivable Turnover Accounts receivable turnover Barco 0 times Kyan 0 times Company Choose Numerator: Choose Denominator:Inventory Turnover = | Inventory turnover 0 times 0 times Barco Kyan Days' Sales in Inventory Company Choose Numerator: Choose Denominator: DaysDays' Sales in Inventory - Days' sales in inventory 0 days days Barco Kyan Days' Sales Uncollected Company Choose Numerator: Choose Denominator: Days Days Sales Uncollected - Days' sales uncollected Barco 0 days Kyan 0 days 2.1 For both companies compute the (a) profit margin ratio, (b) total asset tumover, (c) retum on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and () dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Margin Ratio Company Choose Numerator:I Choose Denominator: Profit margin ratio Profit margin ratio 0 % 0 % Barco Kyan Company Choose Numerator: Total Asset Turnover - Total asset turnover 0 times 0 times Barco Kyan Company Choose Numerator:Choose Return on Total Assets Return on total assets Barco 01% Kyan 0 9% uity Choose Return On Common Stockholders' Equity - Retum On common stockholders' equity Barco Kyan Price-Earnings Ratic Choose Company Choose Numerator: Price-Earnings Ratio Barco 0 times Kyan 0 times Company Choose Numerator: Choose Denominator: Dividend Yield Dividend yield Barco Kyan

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