! Required information [The following information applies to the questions displayed below.] Summary information from th

[answerhappygod]

Required Information The Following Information Applies To The Questions Displayed Below Summary Information From Th 1 (126.67 KiB) Viewed 10 times

! 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. 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 $ 22,000 35,400 84,540 5,800 350,000 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn Kyan Company $ 34,000 53,400 134,500 Better short-term credit risk 7,650 303,400 $ 497,740 $ 532,950 $ 60,340 $ 96,300 79,800 190,000 167,600 Total liabilities and equity $ 497,740 $ 532,950 111,000 226,000 99,650 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, $5 par value Retained earnings Complete this question by entering your answers in the tabs below. 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Barco Company 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 (f) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. 1B short term Kyan Company $ 770,000 $ 911,200 593,100 650,500 7,800 18,000 14,800 154,300 4.06 3.79 $ 28,800 61,600 428,000 190,000 157,320 25,155 217,545 4.81 3.99 $ 51,200 113,400 392,500 226,000 62,453