Homework Help is Here – Start Your Trial Now!
Business
Finance
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
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
See similar textbooks
icon
Related questions
Question

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS