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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 Kyan Kyan Company Barco Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $ 800,000 $886,200 593, 100 Cash $ 35,000 640,500 Accounts receivable, net $ 20,500 39,400 85,040 8,200 12,000 59,400 132,500 Cost of goods sold Interest expense Income tax expense Net income 15,377 24,465 5,900 7,350 183,323 209,235 Merchandise inventory Prepaid expenses Plant assets, net Total assets 320,000 313,400 5.39 4.43 Basic earnings per share. $ 470,840 $ 547,650 Cash dividends per share 3.77 4.02 Beginning-of-year balance sheet Liabilities and Equity data $ 63,340 $ 101,300 Accounts receivable, net $ 26,800 Current liabilities. Long-term notes payable Common stock, $5 par value Merchandise inventory 61,600 84,800 170,000 101,000 236,000 109,350 $ 55,200 111,400 392,500 Total assets 398,000 Retained earnings 152,700 Common stock, $5 par value 170,000 236,000 Total liabilities and equity $ 470,840 $ 547,650 Retained earnings 97,557 89,859 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 ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.
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 (5 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. 1A Acid Test 1A Acct Rec Ratio Turn Ratio 1A Invent Turnover 1A Days Sal in 1A Days Sal Την Uncol 1B short term For both companies compute the current ratio. Current Ratio Company Numerator: Barco Kyan 1 Denominator: 1A Current Ratio Current Ratio Current ratio to 1 to 1 1A Acid Test Ratio >
Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test katio Ratio 1A Acct Rec Turn 1A Invent Turnover For both companies compute the acid-test ratio. (b) Numerator: Company Barco + ♦ Kyan 1A Days Sal in 1A Days Sal 18 short term Inv Uncol Acid-Test Ratio <1A Current Ratio + Denominator: > 1A Acet Rec Turn Acid-Test Ratio Acid-test ratio to 1 to 1
Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio 1A Invent 1A Days Sal in 1A Days Sal 1B short term Turn Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Numerator: Denominator: 1 Barco Kyan <1A Acid Test Ratio Accounts Receivable Turnover Accounts receivable turnover times times 1A Invent Turnover >
Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio 1A Invent Turnover 1A Days Sal in Την Ratio Turn For both companies compute the inventory turnover. (d) Inventory Turnover Company Numerator: Denominator: Barco Kyan 1A Acct Rec Turn < 1A Days Sall Uncol Inventory Turnover Inventory turnover times times 1A Days Sal in Inv 1B short term
Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Turn Ratio 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol Inv For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory Denominator: Days Numerator: Company Barco Kyan 1A Days Sal Uncol < 1A Invent Turnover 18 short term = Days' Sales in Inventory Days' sales in inventory days days >
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 Uncol Inv For both companies compute the days' sales uncollected. (1) X Days Numerator: Company 1 Barco Kyan 1 Days' Sales Uncollected Denominator: <1A Days Sal in Inv 18 short term = = 31 x 11 18 short term Days' Sales Uncollected Days' sales uncollected days days >