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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 Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Barco Company Kyan Company $ 35,000 $ 22,000 40,400 54,400 84,640 134,500 6,000 7,600 330,000 310,400 $ 483,040 $ 541,900 $ 61,340 $ 99,300 80,800 107,000 206,000 170,000 170,900 129,600 Total liabilities and equity $ 483,040 $ 541,900. Data from the current year's income statenent 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, $5 par value Retained earnings $ 760,000 591,100 7,880 14,608 146,492 4.31 3.71 $ 28,800 63,600 398,000 170,000 150,548 Kyan Company $912,200 634,500 12,000 25,183 240,517 5.84 3.96 $ 57,200 113,400 482,500 206,000 52,235 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.
1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn For both companies compute the current ratio. (a) Company by entering your answers in the tabs below. Barco Kyan Numerator: 1 1A Invent Turnover Current Ratio 1A Days Sal in 1A Days Sal Inv Uncol Denominator: 1A Current Ratio R R . 18 short term Current Ratio Current ratio 0 to 1 0 to 1 1A Acid Test Ratio >
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. the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days Complete this question by entering your answers in the tabs below. 1A Current 1A Acd Test 1A Acct Rec Ratio Ratio Turn For both companies compute the acid-test ratio. (b) Company Barco Kyan 1A Invent Turnover Numerator: 1A Days Sal in 1A Days Sal Inv Uncol Acid-Test Ratio <1A Current Ratio 18 short term Denominator: 1A Acet Rec Turn > Acid-Test Ratio Acid-test ratio 0101 01
Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Invent Turnover For both companies compute the accounts (including notes) receivable turnover. (c) Compar.y Вагсэ Kyan Numerator: 1A Aqct Rec Tomm 1 < 1A Days Sal in 1A Days Sal Inv Uncol Accounts Receivable Turnover Denominator: 1A Acid Test Ratio 18 short term Accounts Receivable Turnover Accounts receivable turnover 0 times 1A Invent Turnover > 0 times
ces Complete this question by entering your answers in the tabs below. 1A Acct Rec Turn 1A Days Sal in 1A Days Sal Inv Uncol 1A Current 1A Acid Test Ratio Ratio 1A Invent Tulnover For both companies compute the inventory turnover. (d) Company Barco Kyan Numerator: I Inventory Turnover Denominator: < 1A Acct Rec Turn B Inventory Turnover Inventory turnover 0 times 0 times 1A Days Salin Inv> 18 short term
1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn For both companies compute the days' sales in inventory. Compeny by entering your answers in the tabs below. Barco Kyan Numerator: 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol Days' Sales in Inventory Denominator: 1A Invent Turnover * Days 18 short term Days' Sales in Inventory Days' sales in inventory 0 days o days 1A Days Sal Uncel> Next >
Dok Int ances Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Invent Turnover For both companies compute the days' sales uncollected. Company Barco Kyan 1A Acct Rec Turn Numerator: 1A Days Sal in 1A Days Sal Unfol Inv Days' Sales Uncollected Denominator: <1A Days Salin Inv Days 18 short term Days' Sales Uncollected Days' sales uncollected 0 days 0 days 18 short term >
Inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) ratio, (b) acid-test ratio, (d) accounts receivable turnover, (of inventory tumover, (et days 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 Days Sal in 1A Days Sal Inv Uncol 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn Identify the company you consider to be the better short-term credit risk. Better short-term credit risk 1A Invent Turnover < 1A Days Sal Uncol to short tim 18 short term