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 Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401 Required: 1a. Days Sal in Inv 1a. Days Sal Uncol
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 Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401 Required: 1a. Days Sal in Inv 1a. Days Sal Uncol
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 8PEB: Financial statement data for years ending December 31 for Tango Company follow: a. Determine the...
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Question
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 | Sales | $ 780,000 | $ 883,200 | ||
Cash | $ 19,000 | $ 37,000 | Cost of goods sold | 589,100 | 644,500 |
37,400 | 54,400 | Interest expense | 8,000 | 12,000 | |
Merchandise inventory | 84,340 | 136,500 | Income tax expense | 14,992 | 24,383 |
Prepaid expenses | 5,800 | 7,350 | Net income | 167,908 | 202,317 |
Plant assets, net | 370,000 | 310,400 | Basic earnings per share | 4.66 | 4.68 |
Total assets | $ 516,540 | $ 545,650 | Cash dividends per share | 3.72 | 3.99 |
Liabilities and Equity | Beginning-of-year |
||||
Current liabilities | $ 67,340 | $ 97,300 | Accounts receivable, net | $ 28,800 | $ 50,200 |
Long-term notes payable | 86,800 | 111,000 | Merchandise inventory | 59,600 | 113,400 |
Common stock, $5 par value | 180,000 | 216,000 | Total assets | 438,000 | 392,500 |
182,400 | 121,350 | Common stock, $5 par value | 180,000 | 216,000 | |
Total liabilities and equity | $ 516,540 | $ 545,650 | Retained earnings | 148,412 |
91,401 |
Required:
1a. Days Sal in Inv
1a. Days Sal Uncol
1b. Short Term
1b. Question: *please answer* Identify the company you consider to be the better short-term credit risk. Answer- (Barco company / Kyan Company) - select a company*****
![Complete this question by entering your answers in the tabs below.
1A Current
1A Acid Test
1A Acct Rec
1Α Invent
1A Days Sal in
1A Days Sal
1B short term
Ratio
Ratio
Turn
Turnover
Inv
Uncol
For both companies compute the days' sales uncollected.
(f)
Days' Sales Uncollected
Company
Numerator:
Denominator:
x Days
Days' Sales Uncollected
Days' sales uncollected
=
Barco
days
%D
| Кyan
days
1A Days Sal in Inv
1B short term
II
II
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F7a34595c-2063-4073-952f-985be7cb003f%2Fzil7wyw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
1A Current
1A Acid Test
1A Acct Rec
1Α Invent
1A Days Sal in
1A Days Sal
1B short term
Ratio
Ratio
Turn
Turnover
Inv
Uncol
For both companies compute the days' sales uncollected.
(f)
Days' Sales Uncollected
Company
Numerator:
Denominator:
x Days
Days' Sales Uncollected
Days' sales uncollected
=
Barco
days
%D
| Кyan
days
1A Days Sal in Inv
1B short term
II
II
II
![Complete this question by entering your answers in the tabs below.
1A Current
1A Acid Test
1A Acct Rec
1A Invent
1A Days Sal in
1A Days Sal
1B short term
Ratio
Ratio
Turn
Turnover
Inv
Uncol
For both companies compute the days' sales in inventory.
(e)
Days' Sales in Inventory
Company
Numerator:
Denominator:
Days
Days' Sales in Inventory
Days' sales in inventory
Barco
days
|Кyan
days
1A Invent Turnover
1A Days Sal Uncol
II
II
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F7a34595c-2063-4073-952f-985be7cb003f%2Fvjxjr9d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
1A Current
1A Acid Test
1A Acct Rec
1A Invent
1A Days Sal in
1A Days Sal
1B short term
Ratio
Ratio
Turn
Turnover
Inv
Uncol
For both companies compute the days' sales in inventory.
(e)
Days' Sales in Inventory
Company
Numerator:
Denominator:
Days
Days' Sales in Inventory
Days' sales in inventory
Barco
days
|Кyan
days
1A Invent Turnover
1A Days Sal Uncol
II
II
II
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