Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85,040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308,400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909,200 Cost of goods sold 589,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,608 25,100 Net income 148, 392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80,800 103,000 180,000 216,000 189,300 135, 350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 53,200 61,600 117,400 428,000 392,500 180,000 216,000 176,988 68,686 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 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 1 Choose Denominator: Company Choose Numerator: Current Ratio Current ratio 0 to 1 Barco Kyan 1 = 0 to 1 Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85,040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308,400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909,200 Cost of goods sold 589,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,608 25,100 Net income 148, 392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80, 800 103,000 180,000 216,000 189, 300 135, 350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 61,600 428,000 180,000 176,988 $ 53,200 117,400 392,500 216,000 68,686 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1 B short term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Barco + oto 1 Kyan + 1 0 to 1 Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85,040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308,400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909,200 Cost of goods sold 589, 100 632,500 Interest expense 7,900 13,000 Income tax expense 14,608 25,100 Net income 148, 392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80,800 103,000 180,000 216,000 189,300 135,350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 53,/200 61,600 117,400 428,000 392,500 180,000 216,000 176,988 68,686 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 (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 Acid Test 1A Acct Rec 1A Current Ratio Ratio 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 1 Choose Denominator: = Accounts Receivable Turnover Company Choose Numerator: = Accounts receivable turnover Barco 0 times Kvan ol times Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85,040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308,400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909,200 Cost of goods sold 589,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,608 25,100 Net income 148,392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80,800 103,000 180,000 216,000 189,300 135, 350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 53,1200 61,600 117,400 428,000 392,500 216,000 176,988 68,1686 180,000 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: 1 Choose Denominator: = Inventory Turnover Inventory turnover 1 Barco 1 = 0 times Kyan 0 times Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85,040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308,400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909,200 Cost of goods sold 589,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,608 25,100 Net income 148,392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80,800 103,000 180,000 216,000 189, 300 135, 350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 61,600 428,000 180,000 176,988 $ 53,1200 117,400 392,500 216,000 68, 686 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 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. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: X Days = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days Barco / Kyan 1 Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85, 040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308, 400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909, 200 Cost of goods sold 589,100 632,500 Interest expense 13,000 Income tax expense 14,608 25,100 Net income 148, 392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 7,900 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80,800 103,000 180,000 216,000 189,300 135,350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 53,200 61,600 117,400 428,000 392,500 180,000 216,000 176,988 68,686 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 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 uncollected. (f) CompanyChoose Numerator: Days' Sales Uncollected 1 Choose Denominator: Days = Days' Sales Uncollected = Days' sales uncollected X Barco 1 X 0 days Kyan / X 0 days Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 37,000 Accounts receivable, net 39,400 56,400 Merchandise inventory 85,040 140,500 Prepaid expenses 6,000 7,350 Plant assets, net 360,000 308,400 Total assets $512,440 $549,650 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $909,200 Cost of goods sold 589,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,608 25,100 Net income 148,392 238,600 Basic earnings per share 4.12 5.52 Cash dividends per share 3.78 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 80,800 103,000 180,000 216,000 189, 300 135, 350 $512,440 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 53,200 61,600 117,400 428,000 392,1500 180,000 216,000 176,988 68,1686 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 (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 Identify the company you consider to be the better short-term credit risk. Better short-term credit risk