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please help ! Required information The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in
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! Required information The following information applies to the questions displayed below.) 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 $ 35,000 Accounts receivable, net 39,400 59,400 Merchandise inventory 84,440 138,500 Prepaid expenses 5,700 7,800 Plant assets, net 360,000 312,400 Total assets $510,040 $553, 100 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $887,200 Cost of goods sold 595, 100 648,500 Interest expense 7,500 16,000 Income tax expense 14,608 24.93 Bet income 142,792 198,207 Basic earnings per share 3.76 4.20 Cash dividends per share 3.73 4.02 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 64,340 $ 93,300 78,800 113,000 190,000 236,000 176,900 110,800 $510,040 $553,100 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 52,200 55,600 105,400 418,000 402,1500 190.000 236,000 175,848 102.6337 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts 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 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 1A Days Sal Inv Uncol 1B short term 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the current ratio. Current Ratio 7 Choose Denominator: Company Choose Numerator: Current Ratio Current ratio O to 1 Barco Kyan olto 1 1A Current 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 Tum 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol 18 short term For both companies compute the acid-test ratio. Acid-Test Ratio Choose Denominator Current liabilities Acid-Test Ratio Acid-test ratio Choose Numerator: Short-term investments $ 35,000 (b) Company Cash Barco $ Kyan Current receivables oto 1 20,000 0 to 1 + + > 1A Days Salin Inv 1A Days Sal Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Furnover For both companies compute the inventory turnover. Company Choose Numerator: Cost of goods sold Barco Kyan Inventory Turnover 7 Choose Denominator: 1 Average inventory 1 1 = Inventory Turnover = Inventory turnover 0 times o times = Complete this question by entering your answers in the tabs below. IA Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Dayssal in 1A Invent Turnover 1A Days Sal Uncol 18 short term Inv Days For both companies compute the days' sales in Inventory. (0) Days Sales in Inventory Company Choose Numerator: Choose Denominator: X Barco X Kyan X - Days' Sales In Inventory = Days' sales in Inventory 0 days 0 days 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Day! Sal 18 short term Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. ( Days' Sales Uncollected CompanyChoose Numerator: 1 Choose Denominator: * Days = Days' Sales Uncollected Current receivables, net Net sales x 365 - Days' sales uncollected Barco 1 0 days Kyan 1 0 days x x = #1 Complete this question by entering your answers in the tabs below. 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk Uncol 1 short term Barco company Kyan company Step by Step Solution
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