of 2 Summary information from the financial statements of two companies competing in the same industry follows. Sales Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,500 $ 35,000 Accounts receivable, net 35,400 57.400 Merchandise inventory 84,840 128,500 Prepaid expenses 5.800 7,200 Plant annets, net 320,000 309, 400 Total anseta $468,540 $537,500 Barco Kyan Company Company Data from the current year's income statement $770,000 $879,200 cost of goods sold 587,100 32,500 Interest expense 8.400 10.000 Income tax expense 14,800 4.272 Net income 159,700 212,428 Base warnings per share 3.99 4.50 cash dividenda per share 3.77 4.01 Jook Yine rences Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $67.340 $ 96,300 78,800 117,000 200.000 236,000 122,400 88,200 $468,540 $537,500 Beginning-of-year balance sheet data counts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 27,000 63.600 388,000 200,000 113,500 $8,200 111,400 422.500 236,000 5,044 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 18 short term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Choose Numerator: Short-term investments Choose Denominator: Current liabilities = Acid-Test Ratio Acid-test ratio Current receivables Company Cash Barco $ Kyan $ + 22,500 + 35,000 + | Part to 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn LA Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term soints For both companies compute the accounts (including notes) receivable turnover. eBook (c) Company Choose Numerator: Print Accounts Receivable Turnover Choose Denominator: = Accounts Receivable Turnover - Accounts receivable turnover 0 times times References Barco Kyan Part 1 of 2 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1 A Days Salin Iny 1A Days Sal Uncol 16 short term 18 short term points For both companies compute the inventory turnover. eBook (d) Company Choose Numerator: Inventory Turnover Choose Denominator: Inventory Turnover Inventory turnover Print References Barco O times Kyan O times Part 1 of 2 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol 1B short term oints For both companies compute the days' sales in inventory. Days' Sales In Inventory 1 Choose Denominator: * eBook Company Choose Numerator: Days Print - Days' Sales In Inventory Days' sales in inventory 0 days o days Barco References Kyan Part 1 of 2 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec 1A Invent Turnover 1A Days Sal in 1A Days Sal Untol 18 short term Turn Iny points For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: eBook Company Choose Numerator: Days - Days' Sales Uncollected Days' sales uncollected References Barco Kyan o days o days