Data from the current year-end balance sheets Assets 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 Barco Company 1A Acid Test Ratio (c) Company Kyan Company $ 20,000 $32,000 39,400 60,400 84,640 138,500 6,100 7,050 300,000 305,400 $ 450,140 $ 543,350 Numerator: $ 62,340 $100,300 82,800 220,000 85,000 111,000 196,000 136,050 $ 450,140 $ 543,350 1A Current Ratio 1A Acct Rec Turn For both companies compute the days' sales in inventory. Data from the current year's income statement Sales Cost of goods sold Complete this question by entering your answers in the tabs below. Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 1A Invent 1A Days Sal in 1A Days Sal Uncol Turnover Inv 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 (5) days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Days' Sales in Inventory Denominator: Days 1B short term = Barco Company = $ 810,000 595,100 8,700 15,569 190,631 4.33 3.73 A $ 25,800 57,600 438,000 220,000 58,489 Kyan Company Days' Sales in Inventory Days' sales in inventory $ 888,200 638,500 15,000 24,521 210,179 5.36 3.99 $ 57,200 115,400 372,500 196,000 82,279
Data from the current year-end balance sheets Assets 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 Barco Company 1A Acid Test Ratio (c) Company Kyan Company $ 20,000 $32,000 39,400 60,400 84,640 138,500 6,100 7,050 300,000 305,400 $ 450,140 $ 543,350 Numerator: $ 62,340 $100,300 82,800 220,000 85,000 111,000 196,000 136,050 $ 450,140 $ 543,350 1A Current Ratio 1A Acct Rec Turn For both companies compute the days' sales in inventory. Data from the current year's income statement Sales Cost of goods sold Complete this question by entering your answers in the tabs below. Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 1A Invent 1A Days Sal in 1A Days Sal Uncol Turnover Inv 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 (5) days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Days' Sales in Inventory Denominator: Days 1B short term = Barco Company = $ 810,000 595,100 8,700 15,569 190,631 4.33 3.73 A $ 25,800 57,600 438,000 220,000 58,489 Kyan Company Days' Sales in Inventory Days' sales in inventory $ 888,200 638,500 15,000 24,521 210,179 5.36 3.99 $ 57,200 115,400 372,500 196,000 82,279
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Note:-
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Transcribed Image Text:Data from the current year-end
balance sheets
Assets
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
Barco
Company
1A Acid Test
Ratio
(e)
Company
Kyan
Company
$ 20,000
$ 32,000
39,400
84,640
6,100
60,400
138,500
7,050
300,000 305,400
$ 450,140 $ 543,350
Numerator:
$ 62,340 $ 100,300
82,800 111,000
220,000 196,000
85,000 136,050
$ 450,140 $ 543,350
Saved
1A Current
Ratio
1A Acct Rec
Turn
For both companies compute the days' sales in inventory.
Data from the current year's
income statement
Complete this question by entering your answers in the tabs below.
Sales
Cost of goods sold
Interest expense
Income tax expense
Net income
Basic earnings per share
Cash dividends per share
Beginning-of-year balance sheet
data
Accounts receivable, net
Merchandise inventory
Total assets
Common stock, $5 par value
Retained earnings
1A Invent 1A Days Sal in 1A Days Sal
Turnover
Uncol
Inv
Days' Sales in Inventory
Denominator:
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.
X
X
X
Days
1B short term
=
|||||
=
11
Barco
Company
=
$ 810,000
595,100
8,700
15,569
190,631
4.33
3.73
&
$ 25,800
57,600
438,000
220,000
58,489
Kyan
Company
Days' Sales in Inventory
Days' sales in inventory
o days
$ 888,200
638,500
15,000
24,521
210,179
5.36
3.99
$ 57,200
115,400
372,500
196,000
82,279
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