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Required information 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 $ 21,000 10,000 Accounts receivable, net 36,400 60,400 Merchandise inventory 84,440 140, 500 Pepeld expenses 5,000 7,750 plant assets, net 310.400 Total assets 5477.2405555,050 Barco Kyon Company Company Data from the current year's incone statement Sales 5800,0 $889,200 Cost of goods Lold 5019,100 646,500 Interest expense 8,300 12.000 Income tax expense 15,377 24/546 Net Income 187,233 206,152 Basic earnings per share 4.46 9.00 Cash dividends per share 3.70 4.02 Liabilities and Equity Current libilities Long teen botes payable Connon stock, 55 par value Retained earnings Total Habilities and equity Beginning of year balance sheet data $ 21,340 $100,300 Accounts receivable, net 14,500 100,000 Merchandise Inventory 210,000 206,000 Total assets 111,100 145750 Common stock, 35 par value $477,240 $555,050 Retained earnings $ 28,800 $ 56,200 63,600 107,400 428,000 402.500 210,000 205,000 79,277 105.222 Required: 1a. For both companies compute the current ratio, (4) acid-test ratio. (accounts receivable turnover (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 Patio 1A Act Roc Turn LA Invent Turnover 1A Days Salin 1A Days Sal Uncol 18 short term For both companies compute the current ratio (a) Company Choose Numerator Content Ratio Choose Dominator Current Ratio Current ratio O to 1 101 Barco Kyan 1A Acid Test Ratio > Required: 1a. For both companies compute the tal current ratio, (b) acid-test ratio. ( accounts receivable turnover, (o inventory turnover (el days sales in inventory, and ( 5 days sales uncollected. (Do not round Intermediate calculations.) 16. Identity 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 Add Test Rato 14 Acte IA Invent Turnover 1A Days Salin A Days Sal Inv Uncol In short term For both companies compute the add-test ratio. ACM Ratio () Company Choose Numerator Choate Denominato - Acid Test Ratio Acid test ratio 0 to 1 0101 Harco Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts receivable turnover (inventory turnover (e) days 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1B short term 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turner 1 Choose Denominator: - Accounts Receivable Turnover - Accounts receivable tumover Barco Kyan o times O times Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, ( 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 1A Days Salin Iny 1A Days Sal Uncol 1B short term For both companies compute the inventory tumover. (d) Company Choose Numerator: Inventory Turnover Choose Denominator: Inventory Turnover = Inventory turnover 0 times Barco Kyan O times Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio. (g 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 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol 1B short term Days For both companies compute the days' sales in inventory (0) Days Sales in Inventory Company Choose Numerator: Choose Denominator: 1 x Barco Kyan X - Days Sales in Inventory Days' sales in Inventory 0 days o days X ( 1A Invent Turnover 1A Days Sal Uncol > Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts receivable turnover, (d) Inventory turnover sales in inventory 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 Iny Uncol 1B short term For both companies compute the days' sales uncollected. Days Sales Uncollected Choose Denominator: Company Choose Numerator: x Days Days Sales Uncollected = Days' sales uncollected 1 X 1 Barco Kyan 0 days 111 0 days Required: 1a. For both companies compute the (a) current ratio, (b) acid test ratio, (accounts receivable turnover, ( inventory tur 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. ^ 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk

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