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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 $ 899,200
Cash $ 22,000 $ 36,000 Cost of goods sold 594,100 640,500
Accounts receivable, net 35,400 51,400 Interest expense 8,500 19,000
Merchandise inventory 84,540 134,500 Income tax expense 15,377 24,824
Prepaid expenses 6,200 7,250 Net income 182,023 214,876
Plant assets, net 340,000 305,400 Basic earnings per share 4.55 4.75
Total assets $ 488,140 $ 534,550 Cash dividends per share 3.79 3.93
Liabilities and Equity Beginning-of-year balance sheet data
Current liabilities $ 61,340 $ 95,300 Accounts receivable, net $ 31,800 $ 53,200
Long-term notes payable 82,800 105,000 Merchandise inventory 59,600 107,400
Common stock, $5 par value 200,000 226,000 Total assets 428,000 402,500
Retained earnings 144,000 108,250 Common stock, $5 par value 200,000 226,000
Total liabilities and equity $ 488,140 $ 534,550 Retained earnings 113,577 71,010

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

Complete this question by entering your answers in the tabs below.

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
(a) Current Ratio
Company Numerator: / Denominator: = Current Ratio
/ = Current ratio
Barco / = 0 to 1
Kyan / = 0 to 1

For both companies compute the acid-test ratio.

(b) Acid-Test Ratio
Company Numerator: Denominator: = Acid-Test Ratio
/ = Acid-test ratio
Barco / = 0 to 1
Kyan / 0 to 1

For both companies compute the accounts (including notes) receivable turnover.

(c) Accounts Receivable Turnover
Company Numerator: / Denominator: = Accounts Receivable Turnover
/ = Accounts receivable turnover
Barco / = 0 times
Kyan / = 0 times
  • 1A Acid Test Ratio

For both companies compute the inventory turnover.

(d) Inventory Turnover
Company Numerator: / Denominator: = Inventory Turnover
/ = Inventory turnover
Barco / = 0 times
Kyan / = 0 times

For both companies compute the days' sales in inventory.

(e) Days Sales in Inventory
Company Numerator: / Denominator: Days = Days Sales in Inventory
/ = Days sales in inventory
Barco / = 0 days
Kyan / = 0 days

For both companies compute the days' sales uncollected.

(f) Days' Sales Uncollected
Company Numerator: / Denominator: Days = Days' Sales Uncollected
/ = Days' sales uncollected
Barco / = 0 days
Kyan / = 0 days

please I need the right answer

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