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Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year and

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Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year and balance sheets Assets Cash $ 21,000 $31.000 Accounts receivable, et 37.400 54,400 Current notes receivable (trade) 9,800 3.200 Merchandise inventory 84,840 134,500 Prepaid expenses 6,200 2,850 Plant annets, net 290,000 306,400 Total assets $449,240 $542,350 Barco Kyan Company Coepany Data from the current year's income statement Sales $800,000 $920,200 cost of goods sold 587,100 634.500 Interest expense 8.300 11.000 Income tax expense 15.377 25,404 Net income 189.22) 209,296 Basie earnings per share 4.30 5.28 Cash dividends per share 3.80 3.95 $ 26,800 $ 58,200 Liabilities and Equity Current liabilities Tong-term notes payable Connon stock, $5 par value Retained earnings Total liabilities and equity $ 68,340 $ 94,300 79.800 113,000 220.000 236,000 81,100 99,050 $449,240 $542,350 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, SS par value Retained earnings 65,600 398,000 220,000 59,077 111,400 422,500 236.000 36,194 Required: 1a. For both companies compute the current ratio, () acid-test ratio, id accounts (including notes) receivable turnover. Id Inventory turnover, (e) days' sales in inventory, and (6 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 A Acid Test Ratio A Act Rec Turn 1A Invent Turnover 1A Days Salin in A Days Sol Uncol For both companies compute the current ratio. Comany Chase Numerator Current Ratio Chinese Nenominator Current Ratio Required information Long-term notes payable Connon atoak, 55 par value Retained earnings Total liabilities and equity 79.800 113,000 220,000 236,000 81,100 99,050 5449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65,600 398,000 220,000 59,077 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (invent 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover A Days Sal in 1A Days Sal Uncol Reg 1B For both companies compute the current ratio. Current Ratio Choose Denominator: Company Choose Numerator: Current Ratio Current ratio - 1A Acid Test Ratio > Required information Tong-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65,600 398,000 220,000 59,077 111,400 422,500 236,000 36,194 Required: 1a. For both companies compute the current ratio, (4) acid-test ratio. Id accounts (including notes) receivable turnover. (dinventory 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. 1A Current Ratio 1A Acid Jest Ratic 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 18 For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: = Acid-Test Ratio Acid-test ratio Barco Kyan Required information Tong-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 Merchandise inventory 220,000 236,000 Total assets 81,100 99,050 Common stock, $5 par value $449,240 $542,350 Retained earnings 65,600 398,000 220,000 59,077 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (d) inver 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. 1A Current Ratio 1A Acid Test1A Ac& Rec Tum 1A Invent Turnover 1A Days Salin Iny 1A Days Sal Uncol Reg 1B Ratio For both companies compute the accounts (including notes) receivable tumover. (c) Accounts Receivable Turnover Company Choose Numerator: I Choose Denominator: - Accounts Receivable Turnover - Accounts receivable turnover Barco times Kyan Required information Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79, 800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings Required: 1a. For both companies compute the (a) current ratio, (6) acid-test ratio, (c) accounts (including notes) receivabl 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 1B For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover Choose Denominator: = Inventory Turnover Inventory turnover Barco times Kyan times Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 220,000 236,000 81,100 99,050 $ 449,240 $542,350 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, (c) accounts (including notes) receivable turno 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 18 For both companies compute the days' sales in Inventory. Days' Sales In Inventory Choose Denominator: Company Choose Numerator: Days = Days' Sales in Inventory - Days' sales in inventory days days Barco Kyan ( 1A Invent Turnover 1A Days Sal Uncol > TOLONG Required information Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 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 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. la ferent 1A Current Ratio la cald Test 1A Acid Test Ratio sa act Rec 1A Acct Rec Turn 1A Invent Turnover la inventat la Daya Sal in 1A Days Sal in Iny 1A Days Sal Uhcol na po y Sol Reg 1B Reg 18 nces For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: x Days Company Choose Numerator: = Days' Sales Uncollected Days' sales uncollected days Barco Kyan days ( 1A Days Sal in Inv Reg 10 > Saved TULa et Required information Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79, 800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 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) receivabl 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 Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol " L RE:q 1B Identify the company you consider to be the better short-term credit risk. Better short-term credit risk Required information Total liabilities and equity $449,240 $542,350 Retained earnings 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, ( return on total assets, and stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compu earnings ratios and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decin 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Assets 2A Ret On Com Stock Equity Turn 2A Price Earn Ratio 2A Diy Yield Reg 28 For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover I Choose Denominator: Total Asset Turnover Total asset turnover Barco times Kyan times Total liabilities and equity 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and ( stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, comput earnings ratios and () dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decim 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Price Eam 2A Pro Marg Ratio ZA Tot Asset Turn 2A Ret on Tot AsJets 2A Ret On Com Stock Equity 2A Div Yield Req 28 Ratio For both companies compute the return on total assets. Return on Total Assets Choose Denominator: Company Choose Numerator: - Return on Total Assets Return on total assets Barco Kyan ( 2A Tot Asset Turn 2A Ret On Com Steck Equity > Required information Total liabilities and equity $449,240 $542,350 Retained earnings 59,077 36 2a. For both companies compute the (a) profit margin ratio, (o) total asset turnover, (return on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) price- earnings ratios and (1) dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Req 28 2A Pro Marg 2A Tot Asset 2A Ret on Tot A Ret On A Price Earn Com Stock 2A Div Yield Ratio Turn Assets Ratio Equity For both companies compute the return on common stockholders' equity. Company Choose Numerator: Return On Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity - Return On common stockholders' equity Barco Kyan Required information Total liabilities and equity $449,240 $542,350 Retained earnings 59, 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and (d) return or stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) earnings ratios and (1) dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Ret On 2A Div Yield 2A Pro Marg 2A Tot Asset 2A Ret on Tot 12A Price Eam Com Stock Reg 28 Ratio Tum Assets Ratio Equity Assuming that share and each company's stock can be purchased at $70 per share, compute their price-earnings ratios (0) Company Price-Earnings Ratio Choose Denominator: Choose Numerator: - Price-Earnings Ratio Price earnings ratio Barco times Kyan times Required information Total liabilities and equity $449,240 $542,350 Retained earnings 59,077 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on co stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) price earnings ratios and (1) dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Price Earn 2A Div Yield 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Com Stock Assets Reg 28 Ratio Equity Assuming that share and each company's stock can be purchased at $70 per share, compute their dividend yields. Dividend Yield Choose Denominator: Company Choose Numerator: Dividend Yield Dividend yield Barco Kyan rt 2 Required information Total liabilities and equity $449,240 $542,350 Retained earnings 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, ( return on total assets, and (d) retu stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute the earnings ratios and (y dividend yields. (Do not round Intermediate calculations. Round your answers to 2 decimal pla 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Raq 2B 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Com Stock Ratio 2A Div Yield Equity Identify which company's stock you would recommend as the better investment. The better investment 2A Div Yield

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