Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401 Required: 1a. Acct Rec Turn 1a. Invent Turnover

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter7: Introduction To Financial Statement Analysis

Section: Chapter Questions

Problem 16E

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Summary information from the financial statements of two companies competing in the same industry follows.

	Barco Company	Kyan Company		Barco Company	Kyan Company
Data from the current year-end balance sheets			Data from the current year’s income statement
Assets			Sales	$ 780,000	$ 883,200
Cash	$ 19,000	$ 37,000	Cost of goods sold	589,100	644,500
Accounts receivable, net	37,400	54,400	Interest expense	8,000	12,000
Merchandise inventory	84,340	136,500	Income tax expense	14,992	24,383
Prepaid expenses	5,800	7,350	Net income	167,908	202,317
Plant assets, net	370,000	310,400	Basic earnings per share	4.66	4.68
Total assets	$ 516,540	$ 545,650	Cash dividends per share	3.72	3.99
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 67,340	$ 97,300	Accounts receivable, net	$ 28,800	$ 50,200
Long-term notes payable	86,800	111,000	Merchandise inventory	59,600	113,400
Common stock, $5 par value	180,000	216,000	Total assets	438,000	392,500
Retained earnings	182,400	121,350	Common stock, $5 par value	180,000	216,000
Total liabilities and equity	$ 516,540	$ 545,650	Retained earnings	148,412	91,401

Required:
1a. Acct Rec Turn

1a. Invent Turnover

Complete this question by entering your answers in the tabs below.
1A Current
1A Acid Test
1A Acct Rec
1A Invent
1A Days Sal in
1A Days Sal
1B short term
Ratio
Ratio
Turn
Turnover
Inv
Uncol
For both companies compute the inventory turnover.
(d)
Inventory Turnover
Company
Numerator:
Denominator:
Inventory Turnover
%3D
Inventory turnover
Barco
times
Kyan
times
1A Acct Rec Turn
1A Days Sal in Inv
>

Complete this question by entering your answers in the tabs below.
1A Days Sal
Uncol
1A Current
1A Acid Test
1A Acct Rec
1A Invent
1A Days Sal in
1B short term
Ratio
Ratio
Turn
Turnover
Inv
For both companies compute the accounts (including notes) receivable turnover.
(c)
Accounts Receivable Turnover
Company
Numerator:
Denominator:
Accounts Receivable Turnover
%3D
Accounts receivable turnover
Barco
times
%3D
| Кyan
times
1A Acid Test Ratio
1A Invent Turnover
Mc
Graw
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