Summary information from the financial statements of two companies competing in the same industry follows. Barco...
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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 $770,000 $ 880,200 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 $ 61,340 $ 93,300 80,800 180,000 123,300 $ 34,000 Cost of goods sold 64,600 Interest expense 585,100 7,900 632,500 132,500 Income tax expense 14,800 6,950 304,400 Net income 162,200 13,000 24,300 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.81 3.93 Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 101,000 Merchandise inventory 206,000 Total assets 142,150 $445,440 $ 542,450 Common stock, $5 par value Retained earnings 98,300 55,600 398,000 $ 54,200 107,400 180,000 382,500 206,000 93,600 Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the inventory turnover. Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv 1B short term Uncol Numerator: For both companies compute the current ratio. (a) Company Current Ratio Denominator: Current assets Current liabilities Barco S 155,440 $ Kyan S 238,050 $ 61,340 93,300 < 1A Current Ratio Current Ratio Current ratio 2.5 to 1 2.6 to 1 1A Acid Test Ratio > Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn Turnover Inv 1A Invent 1A Days Sal in 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. (b) Company Acid-Test Ratio Numerator: Acid-Test Denominator: Ratio Cash Short-term investments Current receivables Acid-test Current liabilities ratio Barco $ 19,500 + $ Kyan $ 34,000 $ 37,400 +$ 57,400 $ 9,100 $ 7,200 / $ to 61,340 = 1.1 1 to 93,300 |= 1.1 1 < 1A Current Ratio 1A Acct Rec Turn > Problem 13-5A (Static) Part 1 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 () days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Accounts Receivable Turnover Numerator: Denominator: Accounts Current assets receivables, net Barco $ 37,500 $ Kyan S 57,400 $ < 1A Acid Test Ratio Accounts Receivable Turnover Accounts receivable turnover 9,100 4.1 times 7,200 8.0 times 1A Invent Turnover > Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Company Barco Kyan Numerator: Inventory Turnover Denominator: Inventory Turnover = Inventory turnover = 0 times 0 times < 1A Acct Rec Turn 1A Days Sal in Inv Problem 13-5A (Static) Part 1 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 () days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn Inv 1A Invent 1A Days Sal in 1A Days Sal Turnover 1B short term Uncol For both companies compute the days' sales uncollected. (f) Company Barco Kyan Days' Sales Uncollected Numerator: Denominator: x Days 1 x 1 < 1A Days Sal in Inv x = x Days' Sales Uncollected = Days' sales uncollected 0 days 0 days 1B short term > 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 $770,000 $ 880,200 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 $ 61,340 $ 93,300 80,800 180,000 123,300 $ 34,000 Cost of goods sold 64,600 Interest expense 585,100 7,900 632,500 132,500 Income tax expense 14,800 6,950 304,400 Net income 162,200 13,000 24,300 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.81 3.93 Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 101,000 Merchandise inventory 206,000 Total assets 142,150 $445,440 $ 542,450 Common stock, $5 par value Retained earnings 98,300 55,600 398,000 $ 54,200 107,400 180,000 382,500 206,000 93,600 Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the inventory turnover. Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv 1B short term Uncol Numerator: For both companies compute the current ratio. (a) Company Current Ratio Denominator: Current assets Current liabilities Barco S 155,440 $ Kyan S 238,050 $ 61,340 93,300 < 1A Current Ratio Current Ratio Current ratio 2.5 to 1 2.6 to 1 1A Acid Test Ratio > Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn Turnover Inv 1A Invent 1A Days Sal in 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. (b) Company Acid-Test Ratio Numerator: Acid-Test Denominator: Ratio Cash Short-term investments Current receivables Acid-test Current liabilities ratio Barco $ 19,500 + $ Kyan $ 34,000 $ 37,400 +$ 57,400 $ 9,100 $ 7,200 / $ to 61,340 = 1.1 1 to 93,300 |= 1.1 1 < 1A Current Ratio 1A Acct Rec Turn > Problem 13-5A (Static) Part 1 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 () days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Accounts Receivable Turnover Numerator: Denominator: Accounts Current assets receivables, net Barco $ 37,500 $ Kyan S 57,400 $ < 1A Acid Test Ratio Accounts Receivable Turnover Accounts receivable turnover 9,100 4.1 times 7,200 8.0 times 1A Invent Turnover > Problem 13-5A (Static) Part 1 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Company Barco Kyan Numerator: Inventory Turnover Denominator: Inventory Turnover = Inventory turnover = 0 times 0 times < 1A Acct Rec Turn 1A Days Sal in Inv Problem 13-5A (Static) Part 1 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 () days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn Inv 1A Invent 1A Days Sal in 1A Days Sal Turnover 1B short term Uncol For both companies compute the days' sales uncollected. (f) Company Barco Kyan Days' Sales Uncollected Numerator: Denominator: x Days 1 x 1 < 1A Days Sal in Inv x = x Days' Sales Uncollected = Days' sales uncollected 0 days 0 days 1B short term >
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Related Book For
Principles Of Financial Accounting (Chapters 1-17)
ISBN: 9781260780147
25th Edition
Authors: John Wild
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