NO NEED FOR INCOME STATEMENT / ( THIS IS MY FOURTH ATTEMPT)

Summary information from the financial statements of two companies competing in the same industry follows.

	Barco Company			Kyan Company					Barco Company			Kyan Company
Data from the current year-end balance sheets								Data from the current years income statement
Assets								Sales	$	770,000		$	914,200
Cash	$	19,500		$	31,000			Cost of goods sold		584,100			642,500
Accounts receivable, net		33,400			56,400			Interest expense		8,200			11,000
Merchandise inventory		84,740			138,500			Income tax expense		14,800			25,238
Prepaid expenses		6,100			7,000			Net income		162,900			235,462
Plant assets, net		330,000			304,400			Basic earnings per share		4.07			4.99
Total assets	$	473,740		$	537,300			Cash dividends per share		3.75			4.00
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	68,340		$	102,300			Accounts receivable, net	$	29,800		$	57,200
Long-term notes payable		82,800			103,000			Merchandise inventory		61,600			111,400
Common stock, $5 par value		200,000			236,000			Total assets		428,000			402,500
Retained earnings		122,600			96,000			Common stock, $5 par value		200,000			236,000
Total liabilities and equity	$	473,740		$	537,300			Retained earnings		109,700			49,338

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 (f) days sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk

2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that each companys stock can be purchased at $80 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which companys stock you would recommend as the better investment.

Complete this question by entering your answers in the tabs below. 1A Days Sal in 1A Days Sal 18 short term Inv Uncol Ratio 1A Current 1A Acid Test 1 Acct Rec 1A Invent Ratio Turn Turnover For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio 1 Choose Denominator: 1 = Current Ratio Current ratio 0 to 1 0 to 1 1 Barco Kyan (1A Current Ratio 1A Acid Test Ratio > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turnover For both companies compute the acid-test ratio. 1B short term 1A Days Sal in 1A Days Sal Uncol Turn Inv Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Barco + 0 to 1 Kyan 0 to 1 Complete this question by entering your answers in the tabs below. Inv 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 1B short term Ratio Ratio Turn Turnover Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: Choose Denominator: Accounts Receivable Turnover = Accounts receivable turnover Barco 0 times Kyan 0 times 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 Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Company Choose Numerator. Inventory Turnover Choose Denominator: = Inventory Turnover = Inventory turnover 0 times Barco 1 Kyan 0 times Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 1B short term Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory. Company Choose Numerator: 1 Choose Denominator: * Days Days' Sales in Inventory x = Days' sales in inventory Barco 0 days Kyan o days 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 Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. (f) Company Choose Numerator. Days' Sales Uncollected Choose Denominator: Days = Days' Sales Uncollected = Days' sales uncollected 0 days 0 days Barco Kyan 1 =