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please answer the following question. thank you! Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company

please answer the following question. thank you!

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Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,500 $ 33,000 Accounts receivable, net 37,400 51,400 Merchandise inventory 84,840 134,500 Prepaid expenses 5,400 7,000 Plant assets, net 320,000 309, 400 Total assets $468,140 $535, 300 Barco Kyan Company Company Data from the current year's income statement Sales $790,000 $896,200 Cost of goods sold 596,100 644,500 Interest expense 8,900 10,000 Income tax expense 15,185 24,741 Net income 169,815 216,959 Basic earnings per share 4.99 5.27 Cash dividends per share 3.74 4.03 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 96,300 84,800 113,000 170,000 206,000 152,000 120,000 $468,140 $535, 300 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 56,200 61,600 117,400 428,000 382,500 170,000 206,000 109,345 69,077 Problem 13-5A Part 1 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 (1 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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1 B short term For both companies compute the current ratio. Current Ratio (a) Company Choose Numerator: | Choose Denominator: II = Current Ratio / = Current ratio Barco / 0 to 1 0 to 1 Kyan / = 1A Current Ratio 1A Acid Test Ratio > 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 Inv 1A Days Sal Uncol 1 B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: = Acid-Test Ratio + + / = Acid-test ratio Barco + + oto 1 Kyan + + 0 to 1 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 Iny 1A Days Sal Uncol 1 B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: 1 Choose Denominator: = II Inventory Turnover = Inventory turnover Barco / = 0 times Kyan II 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 Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. Days' Sales in Inventory. (e) Company Choose Numerator: | Choose Denominator: Days / = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days x x x Barco II Kyan 1 = 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) Days' Sales Uncollected CompanyChoose Numerator: | Choose Denominator: Days = Days' Sales Uncollected 1 = Days' sales uncollected Barco 1 II = 0 days Kyan / = 0 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 Inv 1A Days Sal Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk

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