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Required 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days, sales
Required 1a. For both companies compute the (a) current ratio, (b) 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 1A Acid Test Ratio A Days Sal Uncol 1A Current 1A Invent1A Days Sal in 1A Acct Rec Turn 1 Req 18 Ratio Inv For both companies compute the current ratio. Current Ratio Company Choose Numerator: I Choose Denominator: -Current Ratio - Current ratio to 1 to 1 Barco Kyan lin 1A Days SalReq 18 A Invent 1A Days Sal 1A Current1A Acid Test1A Acct Re Ratio Uncol Turn Turnover Ratio For both companies compute the acid-test ratio Acid-Test Ratio Acid-test ratio Choose Denominator: Choose Numerator: Compan to 1 to 1 Barco Kyan 1A Acid Test Ratio 1A Acct Rec E 1A Current Ratio 1A Invent Turnove IA Days Sal in Inv 1A Days Sal Uncol Turn Req 1B For both companies compute the accounts (including notes) receivable turnover. Company Choose Numerator: Choose Denominator: -Accounts Receivable Turnover Accounts receivable turnover Barco times Kyan times A Days Sal Uncol Req 18 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1 Ratio Ratio Turn Turnover Inv For both companies compute the inventory turnoven. Inventory Turnover - Inventory Turnover Inventory turnover Company Choose Numerator: I Choose Denominator: times Barco times Kyan 1A Current 1A Acid Test 1A Acct Rec 1Ivent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turnover For both companies compute the days' sales in inventory. Days' Sales in Inventory Company Choose Numerator: Choose Denominator: x DaysDays' Sales in Inventory Days' sales in inventory Barco Kyan days days Rea 1B 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days San1A Days Sal Uncol Ratio Turn Turnover Inv Ratio For both companies compute the days' sales uncollected. Day Choose Denominator: x DaysDays' Sales Uncollected CompanyChoose Numerator: Days' sales uncollected days days Barco Kyan 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 share and each company's stock can be purchased at $75 per share, compute their (e) price- earnings ratios and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. ldentify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below 2A Pro Marg 2A Tot Asset 2A Ret on Tot Turn 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Ratio Assets For both companies compute the profit margin ratio Profit Margin Ratio CompanyChoose Numerator: Choose Denominator:Profit margin ratio -Profit margin ratio Barco Kyan 2A Pro Marg Ratio 2A Tot Asset Turn>
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