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! 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 $ 18,500 $ 30,000 Accounts receivable, net 39,400 59,400 Current notes receivable (trade) 9,700 8, 200 Merchandise inventory 84,640 142,500 Prepaid expenses 5,900 7,400 Plant assets, net 350,000 312,400 Total assets $508,140 $559,900 Barco Kyan Company Company Data from the current year's income statement Sales $ 790,000 $894,200 Cost of goods sold 587,100 648,1500 Interest expense 8,500 17,000 Income tax expense 15,185 24,1686 Net income 179, 215 204,014 Basic earnings per share 4.98 4.32 Cash dividends per share 3.81 3.92 0 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 91,300 81,800 115,000 180,000 236,000 180,000 117,600 $508,140 $559,900 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 51,200 0 55,600 109,1400 418,000 382,500 180,000 236,1000 137,945 98,610 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (C) accounts (including notes) 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 better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test1A Acct Rec Ratio Ratio Turn 1A Invent Turnover 1A Days Sal 1A Days Sal in Inv Uncol Req 1B For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Cash + Short-term investments + Current receivables I Current liabilities Barco $ 18,500 + + / $ 66,3401 = to 1 Kyan $ 30,000 + + 1 $ 91,300 to 1 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal 1A Days Sal in Inv Uncol Req 1B For both companies compute the accounts (including notes) receivable turnover. Choose Company "Numerator: Net sales Accounts Receivable Turnover Accounts Receivable 1 Choose Denominator: Turnover Average accounts receivable, net = Accounts receivable turnover Barco 0 times Kyan = 0 times 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 1B For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: 1 Choose Denominator: Inventory Turnover Inventory turnover Cost of goods sold 1 Average inventory = Barco 1 = o times Kyan = 0 times 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal 1A Days Sal in Inv Uncol Req 1B For both companies compute the days' sales in inventory. Company Choose Numerator: Accounts receivable Days' Sales in Inventory 1 Choose Denominator: Days / Net sales x 365 = Days' Sales in Inventory = Days' sales in inventory Barco 1 = 0 days Kyan 1 0 days 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal 1A Days Sal in Iny Uncol Req 1B For both companies compute the days' sales uncollected. (1) Days' Sales Uncollected CompanyChoose Numerator: 1 Choose Denominator: x Days Days' Sales Uncollected = Days' sales uncollected Ending inventory 1 Cost of goods sold X 365 Barco 1 0 days Kyan o days

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