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 Assets Barco Company Company Kyan Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement Sales $770,000 $880,200 $ 19,500 $ 34,000 Cost of goods sold 585,100 46,500 64,600 Interest expense Income tax expense 7,900 14,800 162,200 632 see 13,000 24 300 210,400 Cash Accounts receivable, net 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 84,440 132,500 5,000 6,950 290,000 304,400 $445,440 $542,450 $ 61,340 $93,300 80,800 101,000 180,000 206,000 123,300 142,158 $445,440 $542,450 Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 4.51 5.11 3.81 3.93 $ 29,800 $ 54,700 55,600 398,000 180,000 98,300 107,400 382,500 206,000 93 600 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 (5 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. IA Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the acid-test ratio. (b) Company Barco Kyan + Choose Numerator: + Acid-Test Ratio Choose Denominator: 10 to 1 ib. 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 Acid Test 1A Acct Rec Ratio Ratio: Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv 18 short term Uncol For both companies compute the current ratio. (a) Company Choose Numerator: Barco Kyan Current Ratio Choose Denominator: = Current Ratio = Current ratio = = 0 to 1 0 to 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. Complete this question by entering your answers in the tabs below. Ratio 1A Current 1A Acid Test 1A Acct Rec Ratio: Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncoll For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Barco 18 short termi Accounts Receivable Turnover Choose Denominator: 2 1 Accounts Receivable Turnover Accounts receivable turnover = 0 times # O times Kyan 7 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. (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 Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent Turnover For both companies compute the inventory turnover. 1A Days Sal in 1A Days Sal 1B short term Inv Uncol (d) Inventory Turnover Company Choose Numerator: Choose Denominator: = Inventory Turnover 1 = Inventory turnover Barco Kyan 1