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Summary information from the financial statements of two companies competing in the same industry follows. Barco 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-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Problem 13-5A (Static) Part 1 Barco Kyan 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the current ratio. (a) Company $ 19,500 46,500 84,440 5,000 290,000 $ 445,440 Numerator: Current assets Kyan Company $ 34,000 64,600 132,500 6,950 304,400 $ 542,450 Complete this question by entering your answers in the tabs below. Current Ratio Denominator: $ 61,340 $ 93,300 80,800 180,000 123,300 101,000 206,000 142,150 $ 445,440 $ 542,450 Retained earnings 1A Invent 1A Days Sal in Turnover Inv 1 1 Current liabilities 1 / = 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 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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. = data Accounts receivable, net Merchandise inventory = Total assets Common stock, $5 par value 1A Days Sal Uncol 1B short term Barco Company Current Ratio Current ratio 0 to 1 0 to 1 $ 770,000 585,100 7,900 14,800 162,200 4.51 3.81 $ 29,800 55,600 398,000 180,000 98,300 Kyan Company $ 880, 200 632,500 13,000 24,300 210,400 5.11 3.93 $ 54,200 107,400 382,500 206,000 93,600

Summary information from the financial statements of two companies competing in the same industry follows. Barco 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-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Problem 13-5A (Static) Part 1 Barco Kyan 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the current ratio. (a) Company $ 19,500 46,500 84,440 5,000 290,000 $ 445,440 Numerator: Current assets Kyan Company $ 34,000 64,600 132,500 6,950 304,400 $ 542,450 Complete this question by entering your answers in the tabs below. Current Ratio Denominator: $ 61,340 $ 93,300 80,800 180,000 123,300 101,000 206,000 142,150 $ 445,440 $ 542,450 Retained earnings 1A Invent 1A Days Sal in Turnover Inv 1 1 Current liabilities 1 / = 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 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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. = data Accounts receivable, net Merchandise inventory = Total assets Common stock, $5 par value 1A Days Sal Uncol 1B short term Barco Company Current Ratio Current ratio 0 to 1 0 to 1 $ 770,000 585,100 7,900 14,800 162,200 4.51 3.81 $ 29,800 55,600 398,000 180,000 98,300 Kyan Company $ 880, 200 632,500 13,000 24,300 210,400 5.11 3.93 $ 54,200 107,400 382,500 206,000 93,600

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 74E
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Required information Problem 13-5A (Static) 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. 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 Problem 13-5A (Static) Part 1 Barco Kyan 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn For both companies compute the current ratio. (a) Company Barco Company Numerator: $ 19,500 46,500 84,440 5,000 290,000 $ 445,440 Current assets Kyan Company $ 61,340 80,800 180,000 123,300 $ 445,440 $ 542,450 $ 34,000 64,600 132,500 6,950 304,400 Basic earnings per share $ 542,450 $ 93,300 101,000 206,000 142, 150 Complete this question by entering your answers in the tabs below. Current Ratio Denominator: 1A Invent 1A Days Sal in Turnover Inv 1 1 Current liabilities 1 1 = Data from the current year's income statement Sales Cost of goods sold 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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. = = Interest expense Income tax expense Net income |||| 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 Days Sal Uncol 1B short term Barco Company Current Ratio Current ratio 0 to 1 0 to 1 $ 770,000 585,100 7,900 14,800 162,200 4.51 3.81 $ 29,800 55,600 398,000 180,000 98,300 Kyan Company $ 880, 200 632,500 13,000 24,300 210,400 5.11 3.93 $ 54,200 107,400 382,500 206,000 93,600
Transcribed Image Text:Required information Problem 13-5A (Static) 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. 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 Problem 13-5A (Static) Part 1 Barco Kyan 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn For both companies compute the current ratio. (a) Company Barco Company Numerator: $ 19,500 46,500 84,440 5,000 290,000 $ 445,440 Current assets Kyan Company $ 61,340 80,800 180,000 123,300 $ 445,440 $ 542,450 $ 34,000 64,600 132,500 6,950 304,400 Basic earnings per share $ 542,450 $ 93,300 101,000 206,000 142, 150 Complete this question by entering your answers in the tabs below. Current Ratio Denominator: 1A Invent 1A Days Sal in Turnover Inv 1 1 Current liabilities 1 1 = Data from the current year's income statement Sales Cost of goods sold 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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. = = Interest expense Income tax expense Net income |||| 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 Days Sal Uncol 1B short term Barco Company Current Ratio Current ratio 0 to 1 0 to 1 $ 770,000 585,100 7,900 14,800 162,200 4.51 3.81 $ 29,800 55,600 398,000 180,000 98,300 Kyan Company $ 880, 200 632,500 13,000 24,300 210,400 5.11 3.93 $ 54,200 107,400 382,500 206,000 93,600
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