Saved ers 12 & 13 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 from the current year-end balance sheets Data from the current year's income statement Assets Sales $818,000 $984,200 Cash $ 18,500 $ 31,800 Cost of goods sold 583, 180 642,5ee Accounts receivable, net 39,400 55,400 Interest expense 8, 100 16,000 Current notes receivable (trade) 9,200 7,200 Income tax expense 15,569 24,962 Merchandise inventory 84,640 138,500 Net income 283,231 220,738 Prepaid expenses 6,000 7,200 Basic earnings per share 5.08 5.11 Plant assets, net 310, see 311,400 Cash dividends per share 3.73 3.97 Total assets $467,740 $550,700 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 26,800 $ 55.ee Current liabilities $ 70,340 $ 96,300 Current notes receivable (trade) e Long-term nots payable 83,800 107,600 Merchandise inventory 57,600 189.00 Common stock, $5 par value 200,000 216,000 Total assets 448, eee 422,500 Retained earnings 113,600 131,400 Common stock, $5 par value 200, eee 216.bee Total liabilities and equity $467,740 $550,700 Retained earnings 59,569 82,166 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (accounts (including notes) receivable turnover. (inventory turnover (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover Reg 1B 1A Days Sal in 1A Days Sal Iny Uncol For both companies compute the current ratio. Current Ratio Choose Denominator: Company Choose Numerator: - Current Ratio Current ratio Barco to 1 to 1 Kyan 1A Current Ratio 1A Acid Test Ratio > Total Required: ta. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turn turnover, (e) days' sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. Reg 1B 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Tum Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Choose Company Numerator: Accounts Recelvable Turnover Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco times Kyan times Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 70,340 $ 96,300 83,800 107,000 200,000 216,000 113,600 131,400 $467,740 $550,700 Accounts Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turno turnover, (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Days Salin Inv 1A Days Sal Uncol Reg 1B 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Tumor For both companies compute the inventory turnover. (d) Inventory Turnover Choose Denominator: Company Choose Numerator: Inventory Turnover Inventory turnover times 1 Barco Kyan times 1A Acct Rec Turn 1A Days Sal in Inv 20 Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 83,800 107,000 200,000 216,000 113,600 131,400 $467,740 $550,700 Merchandise inventor Total assets Common stock, $5 par value Retained earnings Required: 1a. For both companies Compute the current ratio, (b) acid-test ratio, (accounts (including notes) receivable turnover, turnover, (e) days' sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. Reg 1B 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the days' sales in inventory. Days' Sales In Inventory Choose Denominator: X Days Company Choose Numerator: - Days' Sales in Inventory - Days' sales in inventory days days X Barco Kyan x 1A Invent Turnover 1A Days Sal Uncol > 1071 Current liab Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 83,800 200,000 216,000 Total assets 113,600 131,400 Common stock, $5 par value $467,740 $550,700 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable tu turnover, (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. Reg 1B 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days SM Uncol Inv For both companies compute the days' sales uncollected. 10 Days' Sales Uncollected Company Choose Numerator: 1 Choose Denominator: x Days Days' Sales Uncollected Days' sales uncollected days days X Barco Kyan ( 1A Days Sal in Inv Req 10 Merchandise Prepaid expenses Plant assets, net Total assets $ 6, 310,000 311,400 Cash dividends per $467,740 $550,700 Beginning-of-year balance sheet data Accounts receivable, net $ 70,340 $ 96,300 Current notes receivable (trade) 83,800 107,000 Merchandise inventory 200,000 216,000 Total assets 113,600 131,400 Common stock, $5 par value $467,740 $55 700 Retained earnings 4 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 2 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) receivable turnover. turnover, (e) days' sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. Req 18 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk