Check my work 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 $ 30,000 Accounts receivable, net 38,400 59,400 Current notes receivable (trade) 9,3008 , 200 Merchandise inventory 84,740 138,500 Prepaid expenses 5, 2007 ,700 Plant assets, net 310,000 308,400 Total assets $468, 640 $552,200 Barco Company Data from the current year's income statement Sales $770,000 Cost of goods sold 992,100 Interest expense 8,400 Income tax expense 114,800 Net income 154,700 Basic earnings per share 3.68 Cash dividends per share 3.77 $ 27,800 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $ 93,300 84,800 101,000 210,000 216,000 113,500 141, 900 $468, 640 $552,200 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Common stock. $5 par Retained earnings 59,600 428,000 410,000 117,140 Required: ta. For both companies compute the (a) current ratio, (o) acid-test ratio, (caccounts (including notes) receivable turnover. (d. inventory turnover, (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. of two companies competing in the same industry y Kyan Company 0 $ 30,000 59,400 8, 200 138,500 7,700 308,400 70 $552,200 Barco Kyan Data from the current year's income statement Company Company Sales $770,000 $901,200 Cost of goods sold 592,100 Interest expense 638,500 8,400 19,000 Income tax expense 14,800 24,879 Net income 154,700 218,821 Basic earnings per share 3.68 5.07 Cash dividends per share 3.773 .96 $ 27,800 $ 56,200 40 $ 93,300 0 101,000 DO 216,000 DO 141,900 40 $552,200 Beginning-of-year balance Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 59,600 428,000 210,000 117,140 109,400 402,500 216,000 94,151 tost ratin d accounts (including notes) receivable turnover, (q) dato calculations.) Common stock, $5 par value Retained earnings Total liabilities and equity 210,000 216,000 113,500 141,900 $468,640 $552,200 Total assets Comon stock, $5 par value Retained earnings 428,000 210,000 117,140 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) 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 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 Inv 1A Days Sal Uncol Req 1B For both companies compute the days' sales uncollected. Company Choose Numerator: Days Days' Sales Uncollected Choose Denominator: X x x x – Days' Sales Uncollected – Days' sales uncollected = 0 days = 0 days Barco Kyan < 1A Days Sal in In R eq18 > 0 < Prev 5 6 of 6 !!! Next > Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $ 93,300 84,800 101,000 210.000 216,000 113,500 141,900 $468, 640 $552,200 Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 0 59,600 428,000 210,000 117,140 Required: 1a. For both companies compute the (2) current ratio, (b) acid-test ratio, (d accounts (including notes) 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 better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1A Acct Rec Turn 1A Invent Turnover 1A Day Bal in Inv 1A Days Sal Uncol Ratio Reg 1B Identify the company you consider to be the better short-term credit risk. Better short-term credit risk
