Problem 13-5A (Algo) Comparative ratio analysis LO P3 [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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets $ 800,000 Cash $ 18,500 $ 32,000 Accounts receivable, net 40,400 Merchandise inventory Prepaid expenses Plant assets, net 84,540 6,000 370,000 52,400 130,500 7,800 303,400 $ 526,100 $ 519,440 $ 69,340 $ 99,300 103,000 196,000 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 83,800 180,000 186,300 $ 519,440 127,800 $ 526,100 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 594,100 8,000 $ 883,200 652,500 14,000 15,377 24,383 182,523 192,317 5.07 3.77 4.91 4.00 $ 31,800 $ 54,200 57,600 115,400 408,000 422,500 180,000 196,000 139,497 92,283 (d) Company Numerator: Inventory Turnover Denominator: Inventory Turnover Cost of goods sold Average inventory = Barco $ 594,100 / = Kyan $ 652,500 / = Inventory turnover 0 times 0 times
Problem 13-5A (Algo) Comparative ratio analysis LO P3 [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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets $ 800,000 Cash $ 18,500 $ 32,000 Accounts receivable, net 40,400 Merchandise inventory Prepaid expenses Plant assets, net 84,540 6,000 370,000 52,400 130,500 7,800 303,400 $ 526,100 $ 519,440 $ 69,340 $ 99,300 103,000 196,000 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 83,800 180,000 186,300 $ 519,440 127,800 $ 526,100 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 594,100 8,000 $ 883,200 652,500 14,000 15,377 24,383 182,523 192,317 5.07 3.77 4.91 4.00 $ 31,800 $ 54,200 57,600 115,400 408,000 422,500 180,000 196,000 139,497 92,283 (d) Company Numerator: Inventory Turnover Denominator: Inventory Turnover Cost of goods sold Average inventory = Barco $ 594,100 / = Kyan $ 652,500 / = Inventory turnover 0 times 0 times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 13-5A (Algo) Comparative ratio analysis LO P3
[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
Company
Kyan Company
Barco
Company
Kyan Company
Data from the current year-end
balance sheets
Data from the current year's income
statement
Assets
$ 800,000
Cash
$ 18,500
$ 32,000
Accounts receivable, net
40,400
Merchandise inventory
Prepaid expenses
Plant assets, net
84,540
6,000
370,000
52,400
130,500
7,800
303,400
$ 526,100
$ 519,440
$ 69,340
$ 99,300
103,000
196,000
Total assets
Liabilities and Equity
Current liabilities
Long-term notes payable
Common stock, $5 par value
Retained earnings
Total liabilities and equity
83,800
180,000
186,300
$ 519,440
127,800
$ 526,100
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
594,100
8,000
$ 883,200
652,500
14,000
15,377
24,383
182,523
192,317
5.07
3.77
4.91
4.00
$ 31,800
$ 54,200
57,600
115,400
408,000
422,500
180,000
196,000
139,497
92,283](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe18c4c3e-fff6-4ff0-8265-a5151c1bba12%2F966a9cba-660a-406b-a055-2c330cd2d7f7%2Fc7pxszq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 13-5A (Algo) Comparative ratio analysis LO P3
[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
Company
Kyan Company
Barco
Company
Kyan Company
Data from the current year-end
balance sheets
Data from the current year's income
statement
Assets
$ 800,000
Cash
$ 18,500
$ 32,000
Accounts receivable, net
40,400
Merchandise inventory
Prepaid expenses
Plant assets, net
84,540
6,000
370,000
52,400
130,500
7,800
303,400
$ 526,100
$ 519,440
$ 69,340
$ 99,300
103,000
196,000
Total assets
Liabilities and Equity
Current liabilities
Long-term notes payable
Common stock, $5 par value
Retained earnings
Total liabilities and equity
83,800
180,000
186,300
$ 519,440
127,800
$ 526,100
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
594,100
8,000
$ 883,200
652,500
14,000
15,377
24,383
182,523
192,317
5.07
3.77
4.91
4.00
$ 31,800
$ 54,200
57,600
115,400
408,000
422,500
180,000
196,000
139,497
92,283
Transcribed Image Text:(d)
Company
Numerator:
Inventory Turnover
Denominator:
Inventory Turnover
Cost of goods sold
Average inventory
=
Barco
$
594,100 /
=
Kyan
$
652,500 /
=
Inventory turnover
0 times
0 times
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