[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 Company Company Data from the current year-end balance sheets Assets Cash $ 21,500 $ 30.000 Accounts receivable, net 38.400 57,400 Merchandise inventory 84,640 136,500 Prepaid expenses 6,100 7,050 plant assets, net 290,000 104,400 Total assets $440, 640 $535, 350 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $912,200 Cost of foods sold 593, 100 640.500 Interest expense 8,600 17,000 Income tax expenser 14,680 25, 18) Net Income 153,500 229,517 Basic earnings per share 4.04 4.86 Cash dividends per share -3.75 3.96 Liabilities and Equity Current liabilities Longtere notes payable Common stock, 35 par value Retained earnings Total liabilities and equity 4.63, 1405 91,300 14,500 103,000 190,000 230,000 102,500 105,050 $0.40),600 5535, 350 Beginning of year balance sheet data Accounts receivable, not Merchandise inventory Total assets Connon stock, 55 par value Retained earnings $ 29,300 $ 52,200 57,600 115,400 378,000 412.500 190,000 236.000 91,500 62445 Required: 1o. For both companies compute the current ratio, (acid test ratio. ( accounts receivable turnover (c) 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 Current liabilities Long tera notes payable Common stock, 35 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103.000 190,000 236,000 102,500 105,050 $410,640 $535, 350 Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value itetained earnings $. 29,800 $ 52,200 57,600 115,400 278,000 412. see 190,000 236,000 91,500 62.445 Required: 10. For both companies compute the current ratio. (b) acid-test ratio, ( accounts receivable turnover (c) Inventory turnover (c) 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 sto 1A Acid Test Rato 1 Acct Rec Tum IA Invent Turnover IA Days Salin A Days Sal Uncol In 10 short term For both companies compute the current ratio (a) Current Ratio Company Choose Numerator: Choose Denominator: Barco Current Ratio Currentrato Otot o to Kyan 1 1A Acid Test Ratio > Current liabilities Long ter notes payable Common stock, $5 par value Retained earnings Total Habilities and equity $ 63, 340 $ 91,300 84,800 103,000 199,000 236,000 102,500 105,050 $440, 640 5535, 350 Accounts receivable, net Merchandise inventory Tatal assets Common stock, 55 par value Retained earnings $ 29,800 $ 52,200 57,600 115,400 378,000 412.500 190,000 236,000 91,500 62.445 Required: 10. For both companies compute the (e) current ratio, (b) acid-test ratio, accounts receivable turnover (c) 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 IA Acid Test Ratio 1 Ace Rec Turn 1A Invent Turnover 1A Days Salin A Days Sal Iny Uncol 13 short term For both companies compute the add-test ratio. (b) Company Acid-Test Ratio Choose Numerator: Choose Denominator: Barco Kyan Acid-Test Ratio Acid-test ratio Oto 1 Oto Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103,000 190,000 236,000 102,500 105,050 $440, 640 $535,358 Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 29, 57) 378, 190, 91, Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (accounts receivable turnover (c) inventory turnover ( 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 IA Days Salin A Days Sal Inv Uncol 10 short term For both companies Compute the inventory turnover (d) Company Choose Numerator: Inventory Turnover Choose Denominator: Barco Kyan - Inventory Turnover Inventory turnover Otes O times ( 1A Acet Rec Turn 1A Days Salininy > Current liabilities Long term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103,000 190,000 236,000 102,500 105,050 $440,640 $535,350 Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, accounts receivable turnover, (o) in 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. Inv 1A Current 1A Acid Test IA Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 1B short term Ratio Ratio Turn Turnover Uncol 1A Days Sal in Inv For both companies compute the days' sales in Inventory. (e) Days' Sales in Inventory Company Choose Numerator: 1 Choose Denominator: Days Days' Sales in Inventory X = Days' sales in inventory Barco 0 days Kyan X 0 days X X Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103,000 198,000 236,800 102,500 105,050 $440, 640 $535, 350 Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover, (d) inventory turn sales in Inventory, and (7 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. IA Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Iny 1A Day isal Uncol 1B short term For both companies compute the days' sales uncollected. 0 Company Choose Numerator: Days' Sales Uncollected 1 Choose Denominator: x Days - Days Sales Uncollected = Days' sales uncollected Barco Kyan X 0 days X o days Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 63,340 $ 91,300 Accounts receivable, net 84,800 103,000 Merchandise inventory 190,000 236,000 Total assets 102,500 105,050 Common stock, 55 par value $440, 640 5535,350 Retained earnings $ 29,800 $ 52 57,600 115, 378,000 412 190,000 236, 91,500 62,4 Required: 10. For both companies compute the current ratio, (b) acid-test ratio, (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 IA Acid Test Ratio IA Acct Rec Turn 1A Invent Turnover 1A Days Sol in A Days Sal Iny Uncol 1B short term Identify the company you consider to be the better short-term credit risk Bettor short-term credit risk Current liabilities Long ter notes payable Common stock, $5 par value Retained earnings Total Habilities and equity $ 63, 340 $ 91,300 84,800 103,000 199,000 236,000 102,500 105,050 $440, 640 5535, 350 Accounts receivable, net Merchandise inventory Tatal assets Common stock, 55 par value Retained earnings $ 29,800 $ 52,200 57,600 115,400 378,000 412.500 190,000 236,000 91,500 62.445 Required: 10. For both companies compute the (e) current ratio, (b) acid-test ratio, accounts receivable turnover (c) 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 IA Acid Test Ratio 1 Ace Rec Turn 1A Invent Turnover 1A Days Salin A Days Sal Iny Uncol 13 short term For both companies compute the add-test ratio. (b) Company Acid-Test Ratio Choose Numerator: Choose Denominator: Barco Kyan Acid-Test Ratio Acid-test ratio Oto 1 Oto Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103,000 190,000 236,000 102,500 105,050 $440, 640 $535,358 Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 29, 57) 378, 190, 91, Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (accounts receivable turnover (c) inventory turnover ( 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 IA Days Salin A Days Sal Inv Uncol 10 short term For both companies Compute the inventory turnover (d) Company Choose Numerator: Inventory Turnover Choose Denominator: Barco Kyan - Inventory Turnover Inventory turnover Otes O times ( 1A Acet Rec Turn 1A Days Salininy > Current liabilities Long term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103,000 190,000 236,000 102,500 105,050 $440,640 $535,350 Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, accounts receivable turnover, (o) in 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. Inv 1A Current 1A Acid Test IA Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 1B short term Ratio Ratio Turn Turnover Uncol 1A Days Sal in Inv For both companies compute the days' sales in Inventory. (e) Days' Sales in Inventory Company Choose Numerator: 1 Choose Denominator: Days Days' Sales in Inventory X = Days' sales in inventory Barco 0 days Kyan X 0 days X X Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 63, 340 $ 91,300 84,800 103,000 198,000 236,800 102,500 105,050 $440, 640 $535, 350 Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover, (d) inventory turn sales in Inventory, and (7 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. IA Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Iny 1A Day isal Uncol 1B short term For both companies compute the days' sales uncollected. 0 Company Choose Numerator: Days' Sales Uncollected 1 Choose Denominator: x Days - Days Sales Uncollected = Days' sales uncollected Barco Kyan X 0 days X o days Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 63,340 $ 91,300 Accounts receivable, net 84,800 103,000 Merchandise inventory 190,000 236,000 Total assets 102,500 105,050 Common stock, 55 par value $440, 640 5535,350 Retained earnings $ 29,800 $ 52 57,600 115, 378,000 412 190,000 236, 91,500 62,4 Required: 10. For both companies compute the current ratio, (b) acid-test ratio, (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 IA Acid Test Ratio IA Acct Rec Turn 1A Invent Turnover 1A Days Sol in A Days Sal Iny Uncol 1B short term Identify the company you consider to be the better short-term credit risk Bettor short-term credit risk
