ter 13 Homework Saved Help Save 3 En Check 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 $ 19,500 $ 34,90 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,5ee Prepaid expenses 5, eee 6,950 Plant assets, net 290,000 304, 480 Total assets $445,440 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,880 $880, 280 Cost of goods sold 585, 108 632.500 Interest expense 7,980 13,000 Income tax expense 14,808 24,300 Net income 162,209 210,488 Basic earnings per share 4.51 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 61,340 $ 93,388 Accounts receivable, net 80,888 101,088 Merchandise inventory 180,000 206,800 Total assets 123,300 142,150 Common stock, $5 par value $445,440 $542,450 Retained earnings $ 29,800 $ 54,200 55,680 107,488 398,688 382,500 180,000 206,000 98,300 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 7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. o Hi TH H N 479 er 13 Homework Saved Required: 1a. For both companies compute the (a) current ratio, () acid-test ratio. (c) accounts receivable turnover, ( inventory turnover. (e) days sales in inventory, and (7 days' sales uncollected. (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Iny 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio Choose Denominator: 11 Current Ratio Current ratio 0 to 1 0 to 1 Barco Kyan 11 1A Acid Test Ratio > Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (accounts 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 the 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 1A Acct Rec 1A Invent Turnover Turn 1A Days Sal in Inv 1A Days Sal Uncol B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: = Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 Barco Kyan o Hi E G D N 47 9 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (C) accounts receivable turnover. (d) Inventory turnover (e) dal sales in inventory, and days' sales uncollected. (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1 A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Choose Denominator: Company Choose Numerator: 1 Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times Barco Kyan arch 7 9 Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio, (accounts receivable turnover, (d) inventory turnove sales in inventory, and (1 days' sales uncollected. (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 18 short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover Choose Denominator: = Barco Inventory Turnover Inventory turnover 0 times 0 times Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (C) accounts receivable turnover, () inventory turnover. (e) do sales in inventory, and (1) days' sales uncollected. (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory Choose Denominator: X Days Company Choose Numerator: - Days' Sales in Inventory Days' sales in inventory 0 days 0 days / Barco Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts receivable turnover, (d) Inventory turnover le sales in inventory, and (1) days' sales uncollected. (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Iny 1A Days Shl Uncol 10 short term For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: X Days Company Choose Numerator: = Days' Sales Uncollected Days' sales uncollected 0 days 0 days 11 Barco Kyan Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts receivable turnover (o inventory sales in inventory, and days' sales uncollected. (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk