Required information [The following information applies to the questions displayed below.) Summary information from the financial...
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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 Company Company Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $ 22,000 $31,000 37,400 84,940 5,400 51,400 140,500 $770,000 $882,2001 591,100 648,500 8,800. 10,000 14,800 24,355 7,200 Net incone 155,300 199,345 313,400 4.57 4.22 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 330,000 $479,740 $543,500 $ 65,340 $93,300 Cost of goods sold Interest expense Income tax expense Basic earnings per share cash dividends per share Accounts receivable, net Merchandise inventory Beginning-of-year balance sheet data 101,000 Total assets Common stock, $5 par value Retained earnings 85.800 170,000 236,000 113,200 158,600 $479,740 $543,500 3.75 4.00 $ 27,800 $53,200 63,600 410,000 382,500 111,400 170,000 236,000 130,800 102,655 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. (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. Check 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 Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $ 22,000 $31,000 37,400 84,940 5,400 51,400 140,500 $770,000 $882,2001 591,100 648,500 8,800. 10,000 14,800 24,355 7,200 Net incone 155,300 199,345 313,400 4.57 4.22 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 330,000 $479,740 $543,500 $ 65,340 $93,300 Cost of goods sold Interest expense Income tax expense Basic earnings per share cash dividends per share Accounts receivable, net Merchandise inventory Beginning-of-year balance sheet data 101,000 Total assets Common stock, $5 par value Retained earnings 85.800 170,000 236,000 113,200 158,600 $479,740 $543,500 3.75 4.00 $ 27,800 $53,200 63,600 410,000 382,500 111,400 170,000 236,000 130,800 102,655 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. (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. Check
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