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 Company Xyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement " Assets Sales Cash Accounts receivable, net $ 22,000 34,400 84,740 $ 33,000 57,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities. Long-term notes payable. Common stock, $5 par value. Retained earnings Total liabilities and equity 5,300 132,500 7,350 320,000 312,400 $466,440 $ 542,650 $ 71,340 $ 100,300 83,800 190,000 121,300 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share. Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets 101,000 246,000 95,350 Common stock, $5 par value $466,440 $ 542,650 Retained earnings $790,000 584,100 8,100. 15,185 $ 898,200 636,500 12,000 24,797 182,615 224,903) 4.81 4.57 3.77 3.93 $ 28,800 $ 54,200 55,600 105,400 408,000 372,500 190,000 246,000 81,945 63,803 -Chath 9 < Prev 2 of 2 Next 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 (f) days' sales uncollected. Note: 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. Ratio 1A Current 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the current ratio. Company Numerator: Current assets Barco $ Kyan Current Ratio Denominator: Current Ratio Current liabilities Current ratio 156,640/ 0 to 1 0 to 1 <1A Current Ratio 1A Acid Test Ratio > Part 1 of 2 5 ints 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 (4) days' sales uncollected. Note: 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 eBook Ratio IA Acid Test Relio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal 18 short term Inv Uncol Print 1A Acid Test Ratio For both companies compute une aud-test ratio. References (b) Company Barco Kyan Acid-Test Ratio Numerator: Denominator: Acid-Test F Acid-test r 0 to 0 to <1A Current Ratio 1A Acct Rec Turn > ts plete this question by entering your answers in the tabs below. eBook Ratio 1A Current 1A Acid Test 1 Acct Rec Ratio Turn Turnover 1A Invent 1A Days Sal in 1A Days Sal Inv 1B short term Uncol Print For both companies compute the accounts (including notes) receivable turnover. ferences (c) Company Numerator: Barco Kyan Accounts Receivable Turnover Denominator: Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times < 1A Acid Test Ratio 1A Invent Turnover > < Prev 1 2 of 21 Next > es 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Ingent Turnover 1A Days Sal in 1A Days Sal Invi 1B short term Uncol For both companies compute the inventory turnover. (d) Inventory Turnover Company Numerator: 1 Denominator: Barco Kyan <1A Acct Rec Turn = Inventory Turnover Inventory turnover O times times 1A Days Sal in Inv > S < Prev 2 of 2 Next > 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 Invent Turnover 1A Days Sal in 1A Days Sal Uncol 1B short term es 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the days' sales in inventory. (e) Company Barco Kyan Numerator: Days' Sales in Inventory Denominator: Days Days' Sales in Inventory Days' sales in inventory 0 days 0 days <1A Invent Turnover 1A Days Sal Uncol > Next Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover Inv 1A Days Sal in 1A Qays Sal Uncol 1B short term For both companies compute the days' sales uncollected. (f) Company Numerator: Barco Kyan Days' Sales Uncollected Denominator: x Days Days' Sales Uncollected = Days' sales uncollected = < 1A Days Sal in Inv 1B short term > Prev 1 2 of 2 Next > 0 days 0 days 2 es Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the profit margin ratio. 2A Price Earn Ratio 2A Div Yield Req 2B (a) Company Barco Kyan Profit Margin Ratio Numerator: 1 Denominator: Profit margin ratio Profit margin ratio 0% 0% <2A Prof Mar Ratio 2A Tot Asset Turn > Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Equity Turn Assets For both companies compute the total asset turnover (b) Company Numerator: Barco Kyan 2A Price Earn Ratio 2A Div Yield Req 2B Total Asset Turnover Denominator: Total Asset Turnover = Total asset turnover = 0 times 0 times <2A Prof Mar Ratio 2A Ret on Tot Assets > Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. (c) Company Barco Kyan Numerator: Return on Total Assets Denominator: Return on Total Assets Return on total assets 0% 0% < 2A Tot Asset Turn 2A Ret On Equity > 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on equity. (d) Company Numerator: Barco Kyan / 1 Return On Equity Denominator = Return On Equity = Return On equity = 0% 0% < 2A Ret on Tot Assets 2A Price Earn Ratio > by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Turn Assets Equity 2A Pric Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings (e) Company Barco Kyan Numerator: Price-Earnings Ratio Denominator: Price-Earnings Ratio Price-earnings ratio 0 times < 2A Ret On Equity 2A Div Yield > 0 times Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio 2A Di Yield Req 28 2A Div Yield Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. (f) Company Barco Kyan Numerator: 1. Dividend Yield Denominator: = Dividend Yield = Dividend yield = 0% = < 2A Price Earn Ratio Req 2B > 0%