Summary information from the financial statements of two companies competing in the same industry follows Kyan Company 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 tere notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Company $ 21,000 38,400 84,740 5,600 370,000 $ 519,740 $ 12,000 59,400 134,500 7,050 310,400 $543,350 $ 61,340 $ 97,300 86,000 111,000 100,000 196,000 191,600 119,050 $ 519,740 $ 543,350 Data from the current year's income statement 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 Betained earnings Barco Company Kyan Company $ 790,000 585,100 9,200 15,185 180,515 5.01 3.76 $ 27,000 57,600 448,000 150,000 146,445 $ 901,200 640,500 12,000 24,879 223,021 5.71 3.95 $ 51,200 109,400 372,500 196,000 70,069 Required: 16. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (dt inventory turnovec (e) days sales in inventory, and (5 days' sales uncollected
Summary information from the financial statements of two companies competing in the same industry follows Kyan Company 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 tere notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Company $ 21,000 38,400 84,740 5,600 370,000 $ 519,740 $ 12,000 59,400 134,500 7,050 310,400 $543,350 $ 61,340 $ 97,300 86,000 111,000 100,000 196,000 191,600 119,050 $ 519,740 $ 543,350 Data from the current year's income statement 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 Betained earnings Barco Company Kyan Company $ 790,000 585,100 9,200 15,185 180,515 5.01 3.76 $ 27,000 57,600 448,000 150,000 146,445 $ 901,200 640,500 12,000 24,879 223,021 5.71 3.95 $ 51,200 109,400 372,500 196,000 70,069 Required: 16. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (dt inventory turnovec (e) days sales in inventory, and (5 days' sales uncollected
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: accounting
Transcribed Image Text:1
1 of 2
Mc
Summary information from the financial statements of two companies competing in the same industry follows
Kyan
Company
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-tere notes payable.
Common stock, $5 par value
Retained earnings
Total liabilities and equity
Barco
Company
$ 21,000
38,400
84,740
5,600
370,000
7,050
310,400
$519,740 $ 543,350
$ 61,340
$6,000
100,000
191,600
$ 519,740
$ 32,000
59,400
134,500
Pley
$ 97,300
111,000
196,000
Data from the current year's income
statement
Sales
Cost of goods sold
o
Interest expense
Income tax expense
Total assets
139,050 Common stock, $5 par value
$543,350
Retained earnings
2
Net Income
Basic earnings per share
Cash dividends per share
Beginning-of-year balance sheet data
Accounts receivable, net
Merchandise inventory
of 2
Barco Company Kyan Company
Next >
$ 790,000
585,100
9,200
15,185
100,515
5.01
3.76
Required:
16. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (o inventory turnover (e) days
sales in inventory, and (6 days' sales uncollected
Note: Do not round intermediate calculations.
1b. identify the company you consider to be the better short-term credit risk
$ 27,000
57,600
448,000
180,000
146,445
$ 901,200
640,500
12,000
24,879
223,821
5.7
3.95
$51,200
109,400
372,500
196,000
70,069
BO
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