Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan 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 Total liabilities and equity $ 19,500 46,500 84,440 5,000 290,000 $445,440 $542,450 $ 34,000 64,600 132,500 6,950 Interest expense Income tax expense Net income 304,400 Basic earnings per share Cash dividends per share $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 Data from the current year's income statement Sales Cost of goods sold Barco Company Beginning-of-year balance sheet datal Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Kyan Company $770,000 $880,200 585,100 632,500 13,000 7,900 14,800 24 300 162,200 210,400 4.51 5.11 3.93 3.81 $ 29,800 55,600 398,000 180,000 98,300 $ 54/200 107,400 382,500 206,000 93 600 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. 1 W Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: /Choose Denominator: Barco Kyan 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Inv Uncol term 1 1 1 || = = = Current Ratio Current ratio 0 to 1 0 to 1 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Choose Denominator: Company Choose Numerator: 1 1 Barco Kyan 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Uncol term Inv 1 1 11 = = Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Inv Uncol term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Barco Kyan Days' Sales in Inventory. / Choose Denominator: X Days 1 X 1 X X = = = Days' Sales in Inventory Days' sales in inventory 0 days 0 days Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets For both companies compute the profit margin ratio. (a) Company Choose Numerator: 1 1 1 Barco Kyan 2A Ret On Com Stock 2A Price Earn 2A Div Yield Ratio Profit Margin Ratio Choose Denominator: = 11 11 Profit margin ratio Profit margin ratio % % Req 2B 1A Current Ratio For both companies compute the days' sales uncollected. 1A Acid Test 1A Acct Rec Ratio Turn (f) Company Choose Numerator: Barco Kyan 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol Days' Sales Uncollected ! Choose Denominator: X Days 1 X X X = = = = Req 1B Short term Days' Sales Uncollected Days' sales uncollected 0 days 0 days 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Com Stock Ratio Turn Assets For both companies compute the return on common stockholders' equity. (d) Company Barco Kyan Choose Numerator: 1 2A Price Earn Ratio F 1 2A Div Yield Return On Common Stockholders' Equity Choose Denominator Req 2B = = = Return On Common Stockholders' Equity Return on common stockholders' equity 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets Assuming that share and each company's (f) Company Barco Kyan Choose Numerator: 1 1 1 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Choose Denominator: stock can be purchased at $75 per share, compute their dividend yields. Dividend Yield = Req 2B = Dividend Yield Dividend Yield % % Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan 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 Total liabilities and equity $ 19,500 46,500 84,440 5,000 290,000 $445,440 $542,450 $ 34,000 64,600 132,500 6,950 Interest expense Income tax expense Net income 304,400 Basic earnings per share Cash dividends per share $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 Data from the current year's income statement Sales Cost of goods sold Barco Company Beginning-of-year balance sheet datal Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Kyan Company $770,000 $880,200 585,100 632,500 13,000 7,900 14,800 24 300 162,200 210,400 4.51 5.11 3.93 3.81 $ 29,800 55,600 398,000 180,000 98,300 $ 54/200 107,400 382,500 206,000 93 600 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. 1 W Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: /Choose Denominator: Barco Kyan 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Inv Uncol term 1 1 1 || = = = Current Ratio Current ratio 0 to 1 0 to 1 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Choose Denominator: Company Choose Numerator: 1 1 Barco Kyan 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Uncol term Inv 1 1 11 = = Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Inv Uncol term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Barco Kyan Days' Sales in Inventory. / Choose Denominator: X Days 1 X 1 X X = = = Days' Sales in Inventory Days' sales in inventory 0 days 0 days Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets For both companies compute the profit margin ratio. (a) Company Choose Numerator: 1 1 1 Barco Kyan 2A Ret On Com Stock 2A Price Earn 2A Div Yield Ratio Profit Margin Ratio Choose Denominator: = 11 11 Profit margin ratio Profit margin ratio % % Req 2B 1A Current Ratio For both companies compute the days' sales uncollected. 1A Acid Test 1A Acct Rec Ratio Turn (f) Company Choose Numerator: Barco Kyan 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol Days' Sales Uncollected ! Choose Denominator: X Days 1 X X X = = = = Req 1B Short term Days' Sales Uncollected Days' sales uncollected 0 days 0 days 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Com Stock Ratio Turn Assets For both companies compute the return on common stockholders' equity. (d) Company Barco Kyan Choose Numerator: 1 2A Price Earn Ratio F 1 2A Div Yield Return On Common Stockholders' Equity Choose Denominator Req 2B = = = Return On Common Stockholders' Equity Return on common stockholders' equity 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets Assuming that share and each company's (f) Company Barco Kyan Choose Numerator: 1 1 1 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Choose Denominator: stock can be purchased at $75 per share, compute their dividend yields. Dividend Yield = Req 2B = Dividend Yield Dividend Yield % %
Expert Answer:
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Summary information from the financial statements of two companies competing in the same industry follows. Required 1. For both companies compute the (a) Current ratio, (b) Acid-test ratio, (c)...
-
Summary information from the financial statements of two companies competing in the same industry follows. Required 1. For both companies compute the (a) Current ratio, (b) Acid-test ratio, (c)...
-
Summary information from the financial statements of two companies competing in the same industry follows. Required 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (c)...
-
What is the output of the following program: #include using namespace std; void Push(int x[], int y[], int n) { int i = 0, j = n - 1; while (i
-
Staal Corporation will pay a $3.40 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a return of 11 percent on your...
-
What are the various promotion elements that Pepes uses to communicate with customers?
-
A particular emission line in the hydrogen spectrum has a wavelength of \(656.5 \mathrm{~nm}\). What are all possible transitions (e.g., \(6 d ightarrow 2 s\) ) that could give rise to this emission?
-
Betsy Willis owns TestTutor, an educational tutoring center in Baytown, Florida. The center offers private tutoring in math, writing, and science. Information about the tutoring sessions is as...
-
1. Consider the following java program to answer the questions given below [C02, C3 based on your understanding of inheritance and polymorphism. class Superclass { protected int x = 0; public...
-
The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 2,000 sets per...
-
What is the unit of electrical resistance? A. Joule B. Ohm C. Watt D. Volt Question 2. What is the unit of electrical power? A. Watt B. Joule C. Ohm D. Ampere Question 3. Which of the following...
-
PRODUCT- Apple Smart ring (iRing) 1. Describe the product. What value it provides to people? What is new about it? 2.Describe the segment you are targeting. How big is the target market? What is...
-
2. Write the following code segment in MARIE's assembly language (Loop): (20 poin Sum = 0; X = 3; Count = 10; While Count > 0 do Sum Sum + X; Count = Count 1; Endwhile; 3. Write the following code...
-
Implement the stack and Queue class Implement the Classes in the UML diagram below in the requisite locations. Stack -top: Node +Stack() +isEmpty(): boolean +1sFull (): boolean +getTop(): "Node...
-
Missouri Tennis, Inc. is negotiating for the purchase of a new piece of equipment for its current operations. Missouri Tennis, Inc. has received an offer which specifies that the equipment could be...
-
Which age group would be most negatively affected by reduced Social Security benefits? why?
-
Find an example of a poorly formatted document, as well as an effectively formatted document. Post both documents (use a photo or screenshot) to the Discussion Board and discuss why one is...
-
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...
-
Refer to the statement of cash flows for Google in Appendix A for the fiscal year ended December 31, 2013, to answer the following. 1. What amount of cash is used to purchase property and equipment?...
-
Prepare journal entries to record these selected transactions for Vitalo Company (assume that no reversing entries are recorded). Nov. 1 Accepted a $6,000, 180-day, 8% note dated November 1 from...
-
At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your...
-
Which of the following is a discrete probability distribution? Approach In a discrete probability distribution, the sum of the probabilities must equal 1, and all probabilities must be between 0 and...
-
Graph the discrete probability distribution given in Table 1 from Example 2. Approach In the graph of a discrete probability distribution, the horizontal axis represents the values of the discrete...
-
Compute the mean of the discrete random variable given in Table 1 from Example 2. Approach Find the mean of a discrete random variable by multiplying each value of the random variable by its...
Study smarter with the SolutionInn App