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 fro the current year-end balance sheets Data from the current year's income statement Assets Sales $818,000 $916, 208 Cash $ 20,500 $ 33,000 Cost of goods sold 588, 188 644,5ee Accounts receivable, net 39,400 56,400 Interest expense 7,908 15,eee Merchandise inventory 84,840 138,500 Income tax expense 15,569 25,294 Prepaid expenses 5,600 7,380 Net income 198,431 231, 406 Plant assets, net 350 eee 306,400 Basic earnings per share 5.22 SL36 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 $ 65,340 $100,300 Accounts receivable, net $ 25,800 $ 54,Ree Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 117,480 Connon stock, $5 par value 190,000 216,000 Total assets 388,000 382,500 Retained earnings 158,200 114,380 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 (c) Inventory turnover (e) 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 1A Add Test LA Acet Rec 1A Invent 1A Days Salin A Days Sal Ratio Ratio Tum Turnover Inv Uncol 18 short term For both companies compute the days' sales in inventory (9) Daya' Sales In Inventory Company Choose Numerator Choose Denominator Days Days' Sales In Inventory 1 Days' sales in inventory Barco 0 days Kyan oday 1A Invent Turnover 1A Days Sal Uncel > Required: 1a. For both companies compute the (a current ratio. (b) acid-test ratio, ( accounts receivable turnover, (dinventory turnover, (e) 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. 18 short term 1A Current 1A Add Test IA Acct Rec 1A Invent IA Days Salin 1A Days Sal Rustio Ratio Turn Turnover In Uncol For both companies compute the days' sales uncollected. Company Choose Numerator Days Sales Uncollected Choose Denominator * Days Days Sales Uncollected Days' sales uncollected o days Barco Kyan O days Required: 1a. For both companies compute the (a current ratio, (6) acid-test ratio, (c) accounts receivable turnover, (c) 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. Uncal 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Identify the company you consider to be the better short-term credit risk. Better short-term credit risk
