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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

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 10SPA: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...
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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
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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