Summary information from the financial statements of two companies competing in

Question

Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Company Company Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement 909,200 Assets Sales $790,000 $ 638,500 $ 22,500 35,400 9,800 84,840 5,100 350,000 31,000 Cost of goods sold 53,400 Interest expense Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 585,100 8,400 15,185 181,315 5.04 3.80 10,000 7400 Income tax expense 25,100 235,600 5.45 3.95 140,500 Net income 7,500 308,400 Basic earnings per share Cash dividends per share 548,200 Total assets $507,640 $ Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value $ 27,800 $55,200 0 117,400 $ 69,340 $103,300 Current notes receivable (trade) 81,800 180,000 176,500 105,000 Merchandise inventory 216,000 Total assets 123,900 548,200 0 63,600 388,000 392,500 Retained earnings Common stock, $5 par value 180,000 216,000 otal liabilities and equity 507,640 $ Retained earnings 131,985 58,940

Explanation / Answer

Solution 1.1:

Solution 1.2:

Barco company is better in managing short term credit risk.

Current Ratio Company Choose Numerator / Choose Denominator = Current Ratio Current Assets / Current Liabilities = Current Ratio Barco $157,640.00 $69,340.00 2.27 to 1 Kyan $239,800.00 $103,300.00 2.32 to 1

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.