Summary information from the financial statements of two companies competing in the same industry follows.

Barco Company

Kyan Company

Barco Company

Kyan Company

Data from the current year-end balance sheets

Data from the current years income statement

Thank you in advance!

P 13-5A -) https:/ewco low/connect.html 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 Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $780,000 $892,200 586,100 634 5ee 8,70 10,080 14,992 241631 170, 208 223,69 94 3.95 18,800 32,000 Cost of goods sold ,480 50,480Interest expense 9,600 7,400 Income tax expense 84,44 142, 500 Net income 5, 500 7,300 Basic earnings per share 4.05 3.77 299,e00309,400 Cash dividends per share $446,940 $549,e0e Beginning-of-year balance sheet data Accounts receivable, net $ 26,800 $ 53 20e Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity % 68,340 $ 91,390 Current notes receivable (trade) 79,80 105,000 Merchandise inventory 210,000 226,e00 Total assets 88,800 126,700 Common stock, $5 par value 61,68e 111 40e 438,000 362, 500 210,e0e 22600e 76,932 82,171 $446,940 $549,0 Retained earnings Requirec 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (a) inventory 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 Prev 1:04 PM O Type here to search 12/7/2018 P 13-5A i https:/ewco low/connect.html Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol ces For both companies compute the current ratio Company Choose Numerator: Choose Denominator: Current Ratio Current ratio to 1 to 1 Barco Kyan K1A Current Ratio 1A Acid Test Ratio> 0 Type here to search 1:04 PM 12/7/2018 P 13-5A i https:/ewco low/connect.html Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol ces For both companies compute the acid-test ratio Company Acid-Test Ratio = | Acid-test ratio Choose Numerator: Choose Denominator: Barco to 1 Kyan to 1 A Current Ratio 1A Acct Rec Turn> of 2 Next > O Type here to search 1:04 PM 12/7/2018 P 13-5A -) https:/ewco low/connect.html Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test1A Acct Rec1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol ces For both companies compute the accounts (including notes) receivable turnover Company Choose Numerator: Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco times Kyan times Prey of 2 Next > 1:05 PM O Type here to search 12/7/2018 P 13-5A i https:/ewco low/connect.html Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. A Current 1A Acid Test 1A Acct Rec1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol ces For both companies compute the inventory turnover Inventory Turnover Company Choose Numerator:Choose Denominator: = Inventory Turnover Inventory turnover Barco times Kyan times 1A Acct Rec Turn 1A Days Sal in Inv > of 2 Next > 1:05 PM 0 Type here to search 12/7/2018 P 13-5A i https:/ewco low/connect.html Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol ces For both companies compute the days' sales in inventory Company Choose Numerator: Choose Denominator: x DaysDays' Sales in Inventory - Days' sales in inventory Barco days Kyan days 1A Invent Turnover A Days Sal Uncol> 1:05 PM O Type here to search 12/7/2018 P 13-5A i https:/ewco low/connect.html Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol ces For both companies compute the days' sales uncollected Days' Sales Uncollected CompanyChoose Numerator: Choose Denominator: x DaysDays' Sales Uncollected Days' sales uncollected Barco days Kyan days 1A Days Sal in Inv Req 1B of 2 Next > 1:05 PM O Type here to search 12/7/2018 P 13-5A https:/ewco low/connect.html Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 105,00e Merchandise inventory 61,600 11114080 438,000 362,500 210,000 226,00 76,932 82,171 210,000 226,000 Total assets 88,800126,700 Common stock, $5 par value $446,940 $549,e00 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) 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 better short-term credit risk ces Complete this question by entering your answers in the tabs below 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in1A Days Sal Req 1B nv Uncol Identify the company you consider to be the better short-term credit risk Better short-term credit risk K 1A Days Sal Uncol Req 1B Pre of 2 Next > 1:05 PM O Type here to search 12/7/2018