! 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 $ 21,500 $ 34,000 Accounts receivable, net 38,400 58,400 Merchandise inventory 84,940 132,500 Prepaid expenses 5,900 7,650 Plant assets, net 280,000 308,400 Total assets $430,740 $540,950 Barco Kyan Company Company Data from the current year's income statement Sales $780,000 $899, 200 Cost of goods sold 585,100 640.500 Interest expense 8,300 12,000 Income tax expense 14,992 24,824 Net income 171,608 221,876 Basic earnings per share 4.29 4.70 Cash dividends per share 3.77 3.97 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $ 95,300 84,800 117,000 200,000 236,000 85,600 92,650 $430,740 $540,950 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 51,200 65,600 109,400 448,000 422.500 200,000 236,000 64,792 58.158 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 (6 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. References 1A Current 1A Acid Test Ratio 1A Acct Rec Turn Ratio 1A Invent Turnover 1B short term 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio 1 Choose Denominator: = = Current Ratio Current ratio 0 to 1 0 to 1 Barco = Kyan - Print Complete this question by entering your answers in the tabs below. References 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1 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 0 to 1 Barco Kyan + References 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 accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco 0 times Kyan 0 times - Mc References 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 inventory turnover. (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: = Inventory Turnover Inventory turnover 0 times Barco 1 = Kyan ! 0 times References 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 10 Days Sal Inv Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory days 0 days Barco 1 Kyan 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 ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. eBook Print Complete this question by entering your answers in the tabs below. References 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) CompanyChoose Numerator: Days' Sales Uncollected 1 Choose Denominator: 1 x Days = Days' Sales Uncollected = Days' sales uncollected 0 days 0 days Barco 1 X = Kyan 1 = References 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