! 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 36,400 59,400 Merchandise inventory 84,240 134,500 Prepaid expenses 5,500 7,050 Plant assets, net 290,000 304,400 Total assets $436,640 $540,350 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $904,200 Cost of goods sold 589,100 652,500 Interest expense 8,600 16,000 Income tax expense 15,377 24 962 Net income 186,923 210,738 Basic earnings per share 4.25 4.66 Cash dividends per share 3.72 3.95 1 Beginning-of-year balance sheet data Accounts receivable, net $ 27,800 $ 51.200 Merchandise inventory 55,600 117,400 Total assets 448,000 372,500 Common stock, $5 par value 220,000 226,000 Retained earnings 44,257 70.852 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $ 98,300 83,800 113,000 220,000 226,000 67,500 103,050 $436,640 $540, 350 Darinnel 44,257 70.85 Total liabilities and equity $436,640 $540,350 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (a) 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 Inv 1A Days Sal Uncol 1B short term 1A Days Sal Uncol For both companies compute the current ratio. Current Ratio 1 Choose Denominator: Current liabilities = (a) Company Choose Numerator: Current assets Barco Kyan Current Ratio Current ratio to 1 = to 1 1A Acid Test Ratio nr in inntan. ARIANA RRAllnetar INA A PAINA Required information 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 acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: + + Acid-Test Ratio Acid-test ratio 0 to 1 Barco + + Kyan + + 1 0 to 1 les lain Inc in intentor. In Arinallerton In Rat Paid Required information 1 Complete this question by entering your answers in the tabs below. art 1 of 2 1B short term 1A Current 1A Acid Test 1A Acqt Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol 1A Acct Rec Turn For both companies compute the accounts (including notes) receivable turnover. Ints (c) Accounts Receivable Turnover Company Choose Numerator: Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco O times Kyan 0 times inn in inventory and IAIAIA TIRA Required information 1 Complete this question by entering your answers in the tabs below. Part 1 of 2 1A Days Sal Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Ifivent 1A Days Salin Ratio Ratio Turn Turnover ....... 1A Invent Turnover For both companies compute the inventory turnover. 25 points (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: 1 Inventory Turnover = Inventory turnover 0 times Barco / = Kyan 7 0 times
