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Please help, I cannot figure this one out. 4 Required Informatlon [The following information applies to the questions displayed below Summary Information from the financial
Please help, I cannot figure this one out.
4 Required Informatlon [The following information applies to the questions displayed below Summary Information from the financial statements of two companies competing in the same Industry follows. Part 1 of 2 Barco Company Company Barco Company C Data fron the current year's income statement Sales Data from the current year-end balance sheets Assets Cesh Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets points $788,880 $912,280 590,180 632 580 7,500 14,000 14,992 25 183 167,488 248,517 89 4.83 S 22,800 37,000 Cost of goods sold 37,400 55,4 Interest expense 9,900 8,000 Income tax expense aBook 84,348 138,500 Net income 5,308 7,250 Basic earnings per share 4.41 3.72 340,800 313,48 Cash dividends per share $498,940 $559,550 Print Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained carnines Total liabilities and equity s 30,88852 280 64,348 $101,3 Current notes receivable (trade) 61,680 107 480 438,000 412,500 190,000 24600 138,752 67,089 79,808 183,00 Merchandise inventory 190,800 246,800 Total assets References 164,80109,25 Common stock, S5 par volue $498,948 $559,55e Retained earn ings Required: 1a. For both companies compute the (aj current ratio, (bj acid-test ratio, (c) accounts (including notes) receivable turnover (d inventory turnover. (e) days, sales in inventory, and () days, sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below 1A Current 1A Acid Test 1A Acct Rec1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol For both companies compute the acid-test ratio. Choose Numerator: Choose Denominator: -Acid-Test R ash Short-term investments Current receivables Current liabilities Acid-test ratio 64,340 101,300 Barco [$ 22,000 +$ 69,300 TS 1.4 to 1 Kyan 37000 $ 100,400S 1.4 to 1 K 1A Current Ratio 1A Acct Rec Turn>Step by Step Solution
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