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(The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Sales Assets Cash Barco Kyan Company Company Data from the current year-end balance sheets $ 18,000 $ 37,000 Accounts receivable, net 38,400 52,400 Merchandise inventory 84,840 136,500 Prepaid expenses 6,000 7,200 Plant assets, net 350,000 305,400 Total assets $ 497,240 $538,500 Barco Kyan Company Company Data from the current year's income statement $760,000 $924, 200 Cost of goods sold 589,100 634,500 Interest expense 8,900 10,000 Income tax expense 14,608 25, 514 Net income 147,392 254,186 Basic earnings per share 4.34 6.17 Cash dividends per share 4.03 3.79 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $104,300 83,800 115,000 170,000 206,000 177,100 113,200 $497,240 $538,500 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 $ 50/200 61,600 115,400 408,000 412.500 170,000 206,000 158,568 25.050 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 (6 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 current ratio. (a) Company Choose Numerator: Current Ratio 1 Choose Denominator: Current Ratio Barco Kyan Current ratio 0 to 1 0 to 1 - 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 1A Days Sal Inv Uncol 1B 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 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: Accounts Receivable Turnover = Accounts receivable turnover 0 times 0 times Barco 1 = Kyan 11 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 Uncol 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: Choose Denominator: Inventory Turnover = Inventory turnover 0 times 0 times Barco Kyan 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 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days Barco Kyan X 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 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. (f) CompanyChoose Numerator: Days' Sales Uncollected 1 Choose Denominator: x Days X = Days' Sales Uncollected = Days' sales uncollected 0 days Barco 1 X Kyan 11 X = 0 days 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. (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 1A Days Sal Inv Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Assets 2A Ret On Com Stock Ratio 2A Div Yield 2A Price Earn Ratio Turn Reg 2B For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover / Choose Denominator: = Total Asset Turnover = Total asset turnover 0 times Barco Kyan 0 times Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Price Earn 2A Ret on Tot Assets 2A Ret On Com Stock Ratio 2A Div Yield Reg 2B For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets 1 Choose Denominator: Return on Total Assets Return on total assets 0 % Barco Kyan 0 Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity Choose Denominator Company Choose Numerator: = Return On Common Stockholders' Equity = Return On common stockholders' equity / Barco 1 0 % Kyan / 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. (e) Company Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: = Price-Earnings Ratio = Price-earnings ratio 0 times Barco = Kyan 0 times Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. (1) Company Dividend Yield 1 Choose Denominator: Choose Numerator: Dividend Yield Dividend yield = Barco Kyan 0 % + 0 % 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (C) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Identify which company's stock you would recommend as the better investment. The better investment

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