Summary information from the financial statements of two companies competing in the same industry follows. Barco Company
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Summary information from the financial statements of two companies competing in the same industry follows.
Barco Company | Kyan Company | Barco Company | Kyan Company | ||
Data from the current year-end balance sheets | Data from the current year’s income statement | ||||
Assets | Sales | $ 790,000 | $ 917,200 | ||
Cash | $ 20,500 | $ 38,000 | Cost of goods sold | 589,100 | 636,500 |
Accounts receivable, net | 39,400 | 59,400 | Interest expense | 8,900 | 19,000 |
Merchandise inventory | 84,840 | 140,500 | Income tax expense | 15,185 | 25,321 |
Prepaid expenses | 5,900 | 7,650 | Net income | 176,815 | 236,379 |
Plant assets, net | 300,000 | 305,400 | Basic earnings per share | 4.42 | 5.74 |
Total assets | $ 450,640 | $ 550,950 | Cash dividends per share | 3.77 | 4.01 |
Liabilities and Equity | Beginning-of-year balance sheet data | ||||
Current liabilities | $ 61,340 | $ 99,300 | Accounts receivable, net | $ 30,800 | $ 52,200 |
Long-term notes payable | 81,800 | 115,000 | Merchandise inventory | 65,600 | 117,400 |
Common stock, $5 par value | 200,000 | 206,000 | Total assets | 418,000 | 412,500 |
Retained earnings | 107,500 | 130,650 | Common stock, $5 par value | 200,000 | 206,000 |
Total liabilities and equity | $ 450,640 | $ 550,950 | Retained earnings | 81,485 | 59,483 |
- Required
- 1 Current Ratio
- 2 Acid Test Ratio
- 3 Account Receivable Turnover
- 4 Inventory Turnover
- 5 Days Sale in Inventory
- 6 Days Sale Uncollectable
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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