Problem 13-5A (Algo) 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. Barco Barco Company Kyan Company Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Cash Accounts receivable, net $ 18,500 40,400 $ 32,000 Merchandise inventory 84,540 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 6,000 370,000 52,400 130,500 7,800 303,400 $ 519,440 $ 526,100 $ 69,340 $ 99,300 83,800 180,000 186,300 103,000 196,000 127,800 $ 519,440 $ 526,100 Sales Cost of goods sold 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 $ 800,000 $ 883,200 594,100 8,000 652,500 14,000 Basic earnings per share 15,377 24,383 182,523 192,317 5.07 4.91 3.77 4.00 $ 31,800 $ 54,200 57,600 115,400 408,000 422,500 180,000 196,000 139,497 92,283 For both companies compute the acid-test ratio. 0 to 11 (b) Company Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio Cash + Short-term investments + Current receivables Current liabilities = Acid-test ratio II Barco + + = 0 to 1 Kyan + +
Problem 13-5A (Algo) 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. Barco Barco Company Kyan Company Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Cash Accounts receivable, net $ 18,500 40,400 $ 32,000 Merchandise inventory 84,540 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 6,000 370,000 52,400 130,500 7,800 303,400 $ 519,440 $ 526,100 $ 69,340 $ 99,300 83,800 180,000 186,300 103,000 196,000 127,800 $ 519,440 $ 526,100 Sales Cost of goods sold 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 $ 800,000 $ 883,200 594,100 8,000 652,500 14,000 Basic earnings per share 15,377 24,383 182,523 192,317 5.07 4.91 3.77 4.00 $ 31,800 $ 54,200 57,600 115,400 408,000 422,500 180,000 196,000 139,497 92,283 For both companies compute the acid-test ratio. 0 to 11 (b) Company Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio Cash + Short-term investments + Current receivables Current liabilities = Acid-test ratio II Barco + + = 0 to 1 Kyan + +
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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![Problem 13-5A (Algo) 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.
Barco
Barco
Company
Kyan Company
Kyan Company
Company
Data from the current year-end
balance sheets
Data from the current year's income
statement
Assets
Cash
Accounts receivable, net
$ 18,500
40,400
$ 32,000
Merchandise inventory
84,540
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
6,000
370,000
52,400
130,500
7,800
303,400
$ 519,440
$ 526,100
$ 69,340
$ 99,300
83,800
180,000
186,300
103,000
196,000
127,800
$ 519,440
$ 526,100
Sales
Cost of goods sold
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
$ 800,000
$ 883,200
594,100
8,000
652,500
14,000
Basic earnings per share
15,377
24,383
182,523
192,317
5.07
4.91
3.77
4.00
$ 31,800
$ 54,200
57,600
115,400
408,000
422,500
180,000
196,000
139,497
92,283](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe18c4c3e-fff6-4ff0-8265-a5151c1bba12%2F7b9ec2a0-f24f-4162-9159-dc2dee231026%2Fwp1jm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 13-5A (Algo) 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.
Barco
Barco
Company
Kyan Company
Kyan Company
Company
Data from the current year-end
balance sheets
Data from the current year's income
statement
Assets
Cash
Accounts receivable, net
$ 18,500
40,400
$ 32,000
Merchandise inventory
84,540
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
6,000
370,000
52,400
130,500
7,800
303,400
$ 519,440
$ 526,100
$ 69,340
$ 99,300
83,800
180,000
186,300
103,000
196,000
127,800
$ 519,440
$ 526,100
Sales
Cost of goods sold
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
$ 800,000
$ 883,200
594,100
8,000
652,500
14,000
Basic earnings per share
15,377
24,383
182,523
192,317
5.07
4.91
3.77
4.00
$ 31,800
$ 54,200
57,600
115,400
408,000
422,500
180,000
196,000
139,497
92,283
Transcribed Image Text:For both companies compute the acid-test ratio.
0 to 11
(b)
Company
Acid-Test Ratio
Numerator:
Denominator:
Acid-Test Ratio
Cash
+
Short-term investments
+
Current receivables
Current liabilities
=
Acid-test ratio
II
Barco
+
+
=
0 to 1
Kyan
+
+
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