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[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
[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 Company | Kyan Company | Barco Company | Kyan Company | |||||||
Data from the current year-end balance sheets | Data from the current years income statement | |||||||||
Assets | Sales | $ | 800,000 | $ | 884,200 | |||||
Cash | $ | 19,500 | $ | 35,000 | Cost of goods sold | 591,100 | 630,500 | |||
Accounts receivable, net | 36,400 | 52,400 | Interest expense | 8,800 | 18,000 | |||||
Current notes receivable (trade) | 9,500 | 7,600 | Income tax expense | 15,377 | 24,410 | |||||
Merchandise inventory | 84,440 | 128,500 | Net income | 184,723 | 211,290 | |||||
Prepaid expenses | 5,100 | 7,750 | Basic earnings per share | 4.86 | 4.89 | |||||
Plant assets, net | 290,000 | 305,400 | Cash dividends per share | 3.79 | 3.99 | |||||
Total assets | $ | 444,940 | $ | 536,650 | ||||||
Beginning-of-year balance sheet data | ||||||||||
Liabilities and Equity | Accounts receivable, net | $ | 25,800 | $ | 57,200 | |||||
Current liabilities | $ | 67,340 | $ | 98,300 | Current notes receivable (trade) | 0 | 0 | |||
Long-term notes payable | 80,800 | 103,000 | Merchandise inventory | 59,600 | 111,400 | |||||
Common stock, $5 par value | 190,000 | 216,000 | Total assets | 448,000 | 392,500 | |||||
Retained earnings | 106,800 | 119,350 | Common stock, $5 par value | 190,000 | 216,000 | |||||
Total liabilities and equity | $ | 444,940 | $ | 536,650 | Retained earnings | 66,097 | 80,428 | |||
Required: | |
1.1 | 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 (f) days sales uncollected. (Do not round intermediate calculations.) |
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