Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses...

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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. 5,300 280,000 $ 425,440 $ 547,800 Cash dividends per share Barco Company Kyan Company Barco Company Kyan Company Data from the current year's $ 18,000 $ 32,000 37,400 58,400 84,740 140,500 7,500 309,400 Net income income statement Sales Cost of goods sold Interest expense Income tax expense Basic earnings per share $ 800,000 587,100 $ 904,200 634,500 7,900 17,000 15,377 24,962 189,623 227,738 4.51 5.81 3.73 4.03 Beginning-of-year balance sheet data $ 61,340 $ 97,300 83,800 113,000 Accounts receivable, net Merchandise inventory $ 27,800 $ 56,200 61,600 115,400 210,000 70,300 196,000 Total assets 448,000 362,500 141,500 Total liabilities and equity $ 425,440 $ 547,800 Common stock, $5 par value Retained earnings 210,000 196,000 37,337 71,738 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. Note: 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 Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Prev 2 of 2 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. 5,300 280,000 $ 425,440 $ 547,800 Cash dividends per share Barco Company Kyan Company Barco Company Kyan Company Data from the current year's $ 18,000 $ 32,000 37,400 58,400 84,740 140,500 7,500 309,400 Net income income statement Sales Cost of goods sold Interest expense Income tax expense Basic earnings per share $ 800,000 587,100 $ 904,200 634,500 7,900 17,000 15,377 24,962 189,623 227,738 4.51 5.81 3.73 4.03 Beginning-of-year balance sheet data $ 61,340 $ 97,300 83,800 113,000 Accounts receivable, net Merchandise inventory $ 27,800 $ 56,200 61,600 115,400 210,000 70,300 196,000 Total assets 448,000 362,500 141,500 Total liabilities and equity $ 425,440 $ 547,800 Common stock, $5 par value Retained earnings 210,000 196,000 37,337 71,738 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. Note: 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 Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Prev 2 of 2

Answer rating: 100% (QA)

1a Calculations Barco Company a Current Ratio Current Assets Current Liabilities Current Assets 1800... View the full answer