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. Rareo Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, Det 37.400 57,400 Current notes receivable (trade) 9,100 7.200 Merchandise inventory 84.440 132,500 Prepaid expenses 5.000 6.950 plant assets, net 290,000 304,400 Total asuta $445,410 $542,450 Barco Kyan Company Company Data from the current year' income statement Sales $770,000 $880,200 Cost of goods sold 585,100 632,500 Interest expense 7.900 13,000 Income tax expense 14.800 24.300 Net income 162,200 210,400 Basie earnings per ahare 4.51 9.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80.00 101.000 180.000 206.000 123,300 142,150 S445,440 $542, 450 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 0 0 55,600 107.00 398,000 382,500 180,000 206.000 98,300 93,600 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Batio 1A Acct Rec Tum 1A Invent Turnover 1 A Days Salin Iny 1A Days Salt short term Uncol 18 short term For both companies compute the acid-test ratio. Acid-Test Ratio Company Choose Numerator: Acid-Test Choose Denominator: Current abilities Cash Short-term Investments Current receivables Acid-test ratio Barco 19.500 61.340 Kyan 34000 93,300 of 2 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (d) in turnover, (e) days' sales in inventory, and days' sales ncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. Complete this question by entering your answers in the tabs below. LA Current Ratio IA Acid Test Ratio 1A Acct Rec 1 Turn 1 A Days Sal in 1A Invent Tuntover 1A Days Sal Uncol 1B short term For both companies compute the inventory turnover. Inventory Turnover Choose Denominator: Company Choose Numerator: Inventory Turnover Inventory turnover times times Barco 0 Kyan Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts (including notes) receivable turnove 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Dys Sal in 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover hiny 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory Choose Days Denominator: Company Choose Numerator: Days' Sales in Inventory Days' sales in inventory Barco 0 days Kyan 0 days Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) receivable 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec 1A Invent Turnover 1A Days Sal in Iny 1A Days Sal Uhcol 1B short term Turn For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose x Days Denominator: Company Choose Numerator: = Days' Sales Uncollected Days' sales uncollected 0 days 0 days Barco Kyan 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. Rareo Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, Det 37.400 57,400 Current notes receivable (trade) 9,100 7.200 Merchandise inventory 84.440 132,500 Prepaid expenses 5.000 6.950 plant assets, net 290,000 304,400 Total asuta $445,410 $542,450 Barco Kyan Company Company Data from the current year' income statement Sales $770,000 $880,200 Cost of goods sold 585,100 632,500 Interest expense 7.900 13,000 Income tax expense 14.800 24.300 Net income 162,200 210,400 Basie earnings per ahare 4.51 9.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80.00 101.000 180.000 206.000 123,300 142,150 S445,440 $542, 450 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 0 0 55,600 107.00 398,000 382,500 180,000 206.000 98,300 93,600 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Batio 1A Acct Rec Tum 1A Invent Turnover 1 A Days Salin Iny 1A Days Salt short term Uncol 18 short term For both companies compute the acid-test ratio. Acid-Test Ratio Company Choose Numerator: Acid-Test Choose Denominator: Current abilities Cash Short-term Investments Current receivables Acid-test ratio Barco 19.500 61.340 Kyan 34000 93,300 of 2 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (d) in turnover, (e) days' sales in inventory, and days' sales ncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. Complete this question by entering your answers in the tabs below. LA Current Ratio IA Acid Test Ratio 1A Acct Rec 1 Turn 1 A Days Sal in 1A Invent Tuntover 1A Days Sal Uncol 1B short term For both companies compute the inventory turnover. Inventory Turnover Choose Denominator: Company Choose Numerator: Inventory Turnover Inventory turnover times times Barco 0 Kyan Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts (including notes) receivable turnove 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Dys Sal in 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover hiny 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory Choose Days Denominator: Company Choose Numerator: Days' Sales in Inventory Days' sales in inventory Barco 0 days Kyan 0 days Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) receivable 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec 1A Invent Turnover 1A Days Sal in Iny 1A Days Sal Uhcol 1B short term Turn For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose x Days Denominator: Company Choose Numerator: = Days' Sales Uncollected Days' sales uncollected 0 days 0 days Barco Kyan