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 Assets Sales $ 780,000 $ 901,200 Cash $ 20,000 $ 37,000 Cost of goods sold 591,100 650,500 Accounts receivable, net 35,400 58,400 Interest expense 8,200 19,000 Merchandise inventory 84,640 132,500 Income tax expense 14,992 24,879 Prepaid expenses 6,000 7,600 Net income 165,708 206,821 Plant assets, net 330,000 304,400 Basic earnings per share 4.60 4.79 Total assets $ 476,040 $ 539,900 Cash dividends per share 3.78 3.98 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,340 $ 101,300 Accounts receivable, net $ 27,800 $ 56,200 Long-term notes payable 84,800 105,000 Merchandise inventory 55,600 107,400 Common stock, $5 par value 180,000 216,000 Total assets 428,000 392,500 Retained earnings 145,900 117,600 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 476,040 $ 539,900 Retained earnings 116,272 82,715 rev: 11_27_2019_QC_CS-192168 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.

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 $ 780,000 $901,200 Cash $ 20,000 $ 37,000 Cost of goods sold 591,100 650,500 Accounts receivable, net 35, 400 5B, 400 Interest expense B, 200 19,000 Merchandise inventory 84,640 132,500 Income tax expense 14,992 24,879 Prepaid expenses 6,000 7,600 Net income 165, 708 206, 821 Plant assets, net 330,000 304,400 Basic earnings per share 4.60 Total assets $476,040 $539,900 Cash dividends per share 3.78 3.98 4.79 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $101,300 84,800 105,000 180,000 216,000 145,900 117,600 $476,040 $539,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 27,800 $ 56,200 55,600 107,400 420,000 392,500 180,000 216,000 116,272 82,715 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio. (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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Inv 1A Days Sal Uncol 1B short term ed Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: Choose Denominator: Current Ratio Current ratio Current assets Current liabilities to Barco X x = 0 Kyan 11 0 to 1 1A Current Ratio 1A Acid Test Ratio > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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 (1) 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 Days Sal in 1A Days Sal Inv Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: - Cash Short-term investments Current receivables 1 Acid-Test Ratio Acid-test ratio 0 to Current liabilities Barco x = | X 0 to *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. THE lour 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 1A Days Sal Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Choose Company Choose Denominator: Accounts Receivable Turnover Numerator: Net sales Average accounts receivable, net Accounts receivable turnover Barco x! times Kyan XI 0 times 11 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. ed Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio. (9) 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales in inventory. Days' Sales in Inventory Company Choose Numerator: Choose Denominator: Merchandise inventory Cost of goods sold Barco x Kyan Days X 365 Days' Sales in Inventory Days' sales in inventory 0 days 0 days X ( 1A Invent Turnover 1A Days Sal Uncol > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. d Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol 1B short term Inv For both companies compute the days' sales uncollected. Days' Sales Uncollected Company Choose Numerator: Choose Denominator: Current receivables, net Net sales Barco X x x Kyan Days X Days' Sales Uncollected Days' sales uncollected 0 days 0 days 1A Days Sal in Inv 1B short term > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Retained earnings Total liabilities and equity 145, 900 117,600 $ 476,040 $539,900 Common stock, $5 par value Retained earnings 180,000 116,272 216,000 82 715 16 s awarded cored Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( 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. 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 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 Barco company