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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

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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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $818,000 $916,200 Cash $ 20,500 $ 33,000 Cost of goods sold 588, 108 644,5e2 Accounts receivable, net 39,480 56,400 Interest expense 7,988 15, eee Merchandise inventory 84,848 138,500 Income tax expense 15,569 25,294 Prepaid expenses 5,600 7,380 Net income 198,431 231, 406 Plant assets, net 350,000 306,400 Basic earnings per share 5.22 5136 Total assets $500,340 $541,600 Cash dividends per share 3.73 3.91 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,348 $180, 300 Accounts receivable, net $ 25,800 $ 54,Ree Long-term notes payable 86,800 111,000 Merchandise inventory 59,608 117,400 Common stock, $5 par value 190,000 216,000 Total assets 388,000 382,500 Retained earnings 158,280 114,300 Common stock, $5 par value 190,000 216,000 Total liabilities and equity $500,340 $541,600 Retained earnings 101,509 51.586 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover (of inventory turnover (c) days sales in inventory, and (7 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 LA Acct Rec Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 18 short term For both companies compute the current ratio. Company Choose Numeratori Current Ratio Choose Denominator 1 Barco Kyan - Current Ratio Current ratio oto 1 O to 1 1A Acid Test Ratio > Required: 1a. For both companies compute the (a current ratio. (b) acid-test ratio, ( accounts receivable turnover (c) inventory turnover (@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. 18 short term 1A Current IA AOF Test 1A Acet Rec 1A Invent A Days Salin 1A Days Sat Ratio Ratio Tum Turnover Inv Uncol For both companies compute the acid-test ratio. () Acid-Test Ratio Company Cheese Numerator Choose Denominator -Acid-Test Ratio Acid-testato Olot Barco Kyan olto Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test LA Acct Rec 1A Invent IA Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator Choose Denominater: Accounts Recevable Tumover Accounts receivable turnover Barco O times Kyan Oltimed Required: 1a. For both companies compute the current ratio. (acid-test ratio, ( accounts receivable turnover, ich inventory turnover. () days sales in inventory, and (1 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 IA Acct Rec Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol Inw 1B short term For both companies compute the inventory turnover. (d) Company Choose Numerator Inventory Turnover Choos. Denominator Inventory Tumevur Inventory turnover O times O times Barco Kyan C1A Acct Rec Turn 1A Days Salininy >

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