0 Required Information 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. 206,000 130,950 $494,740 $541,250 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 $790,000 $926,200 Cash $ 20,000 $ 32,000 Cost of goods sold 587,100 634,500 Accounts receivable, not 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 $ 63,340 80,800 170,000 180,600 $ 93,300 111,000 34,400 54,400 Interest expense 8,600 18,000 84,440 142,500 Income tax expense 15,185 25,570 5,900 6,950 Net income 179,115 248,130 350,000 305,400 Basic earnings per share 5.27 6.02 $ 494,740 $ 541,250 Cash dividends per share 3.72 3.92 Beginning-of-year balance sheet data Accounts receivable, net $ 26,000 $ 51,200 Merchandise inventory 63,600 117,400 Total assets 398,000 422,500 Common stock, $5 par value Retained earnings 170,000 206,000 127,965 44,324 Problem 13-5A (Algo) Part 1 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 (4 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answer in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal 1B short term Inv Uncol For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: Current Ratio Current ratio 0 to 1 0 to 1 <1a current ratio 1a acid test> Complete this question by entering your answers in the tabs below. IA Current 1A Add Test Ratio Ratio 1A Acct Rec Tum 1A Invent 1A Days Sal in 1A Days Sal 18 short term Turnover For both companies compute the acid-test ratio. Inv Uncol (b) Company Barco Kyan Acid-Test Ratio Numerator Denominator: Acid-Test Ratio <1a current ratio 1a acct rec turn> Acid-lost ratio 0 to 1 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Numerator: Barco Accounts Receivable Turnover Denominator Accounts Receivable Turnover Accounts receivable turnover 0 times Kyan 0 times <1a acid test ratio 1a invent turnover> Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the inventory turnover. (d) Company Numerator Barco Kyan Inventory Turnover Denominator: Inventory Turnover Inventory turnover 0 times Osimes <1a acct rec tum 1a days sal in inv> Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Tum 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv 18 short term Uncol For both companies compute the days' sales in Inventory. Company Numerator Days Sales In Inventory Denominator Barco Kyan " Days Days' Sales in Inventory Days' sales in inventory 0 days O days <1a invent turnover 1a days sal uncol> Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Add Test Ratio 1A Acct Rec Tum 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the days' sales uncollected. Company Barco Kyan Numerator Days Sales Uncollested Denominator: Days Days' Sales Uncollected Days' sales uncollected 0 days Odays <1a days sal in inv 18 short term>