[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 Assets Canh Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, bet Total assets Liabilities and Equity Current liabilities Long-ter notes payable Common stock, 55 par value Retained varnings Total abilities and equity $ 19,000 $ 37,000 33,400 53,400 84,740 130,500 5.300 7,800 340,000 309,400 $ 482,440 $ 538,100 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 780,000 $918,200 594,100 640,500 8,100 19.000 14,992 25,349 162,808 233, 351 4.07 5.66 3.82 3.98 $ 63,340 $ 104,300 80, 800 103,000 200,000 206,000 138,300 124,800 $ 482,440 $ 538,100 $ 28,800 63,600 448,000 200,000 128,292 $ 50,200 2107, 400 392,500 206,000 55,425 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts receivable turnover, (a) inventory turnover. (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 15. 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 Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the current ratio. Current Ratio Denominator: Current liabilities Company Numerator: Current assets Barco Kyan Current Ratio Current ratio O to 1 O to 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (a) inventory turnover (e) days' sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. LA Current Ratio 1A Add Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1 Days Salin 11 Days Sal 18 short term Inv Uncol For both companies compute the acid-test ratio. Acid-Test Ratio Numerator: Short-term investments Denominator Current liabilities Acid-Test Ri Acid-test rat Current receivables (1) Company Cash Barco Kyan O to Oto Required: 1a. For both companies compute the (a) current ratio, (6) acid test ratio, (accounts receivable turnover () Inventory turnover (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) tb. 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 IA Acid Test Ratio 1A Acct Rec Turn 1A Invent A Days Salin 1A Days Sal 18 short term Turnover Inv Uncol For both companies compute the accounts (including notes) recevable turnover. c) Accounts Receivable. Turnover Company Numerator: Denominator: Accounts Receivable Turnover Net sales Average accounts receivablo, net Accounts receivable tumover Barco 1 O times Kyan 0 times Required: ta. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable turnover, (a) inventory turnover (c) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 13 short term 1A Current 1A Acid Test 1A Acct Rec 1A I vent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Iny Uncol For both companies compute the inventory turnover. Inventory Turnover Denominator: Average inventory (d) Company Numerator: Cost of goods sold Barco Kyan Inventory Turnover Inventory turnover = 1 O times 1 O times Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (accounts receivable turnover (c) inventory turnover (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk, Complete this question by entering your answers in the tabs below. 18 short term 1A Current IA Acid Test 1A Acct Rec 1A Invent 1A Dpys Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales in inventory, (0) Days Sales In Inventory Company Numerator. Denominator: * Days Ending merchandise inventory Cost of goods sold 365 Barco Kyan Days Sales in Inventory Days sales in inventory o days = o days Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts receivable turnover (inventory turnover (e) days' sales in inventory, and (y 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. 18 short term 1A Current IA Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. Company Numerator: Accounts receivable, net Barco Days Sales Uncollected Denominator: Days I Net sales x 365 Days' Sales Uncollected Days' sales uncollected O days O days ### = XX Kyan [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 Ryan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Trepaid expenses Plant assets, bet Total asets Liabilities and Equity Current abilities Long-term notes payable Common stock, 55 par value Metained earnings Total liabilities and equity $ 19,000 $ 37,000 33,400 53,400 84,740 130,500 5,300 7.000 340,000 309,400 $ 482,440 $ 538,100 Data from the current year's income statement Salen Cont of goods sold Interest expense Income tax expense Net income Basic carninga per share Canh dividend per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 780,000 $918,200 594,100 640,500 8,100 19.000 14,992 25,349 162,008 233,351 4.07 5.66 3.82 3.98 $ 63,340 $ 104,300 80,800 103000 200,000 206,000 138,300 124,800 5 482,440 $ 538,100 $ 28,600 63,600 448,000 200.000 128,292 $ 50,200 1107, 400 392,500 206,000 55,425 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (c) return on total assets, and (c) return on quity. Assuming that each company's stock can be purchased at $100 per share, compute their (el price-earnings ratios and (0 dividend yields. 2b. Identity which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar ZA Tot Asset 2A Reth Tot 2A Ret On 2A Price Earn Ratio 2A Div Yield Turn Assets Equity Ratio For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Numerator: Denominator: Profit margin ratio Profit margin ratio Barco 1 0 % Kyan 4 0 % ## requirea information 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (o return on total assets, and (of return on equity. Assuming that each company's stock can be purchased at $100 per share, compute their(e) price-earnings ratios and (1) dividend yields. 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 Reg 28 2A Prof Mar 2A TotAsset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity Ratio For both companies compute the total asset turnover b) Total Asset Turnover Company Numerator: Denominator Total Asset Turnover Total asset turnover O times O times Barco Kyan CP 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (a return on total assets, and (d) return on quity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and ( dividend yields 2b. Identity 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 Reg 28 2A Prof Mar 2A Tot Asset 2A Rt on Tot 2A Ret On Ratio Turn Assets Equity Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Numerator: Denominator: Return on Total Assets Return on total assets 0 % 01% Barco Kyan 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (o return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and () dividend yields 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 Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Pet On Equity 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on equity. (d) Company Numerator: Return On Equity Denominator Return On Equity Retum On equity 096 Barco Kyan 0 % 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $100 per share, compute thelr(e) price-earnings ratios and ( dividend yields 21. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On za pce Earn 2A Div Yield Ratio Turn Assets Equity Ratio Reg 28 Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. Price Earnings Ratio Denominator: Company Numerator: Price-Earnings Ratio Price-earings ratio O times Barco Kyan O times 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (a return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and (1) dividend yields. 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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets 2 Div Yield Equity Ratio Reg 28 Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. 09 Dividend Yield Company Numerator: Denominator: Dividend Yield Dividend yield Barco 0 % Kyan 0 %
