0 Required information Problem 13-5A 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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data fron the current year's income statement Assets Sales $770,000 $918,200 Cash $ 18,508 5 31,000 cost of goods sold 594,100 650,500 Accounts receivable, net 38,400 56,400 Interest expense 7,700 19,000 Merchandise inventory B4,940 132,500 Income tax expense 14,800 25,349 Prepaid expenses 6,000 7,100 Net Income 153,400 223,351 Plant assets, net 300,000 304,400 Basic earnings per share 3.65 5.42 Total assets $447,840 $531,400 Cash dividends per share 3.80 3.95 Liabilities and Equity Beginning-of-year balance sheet data Current Liabilities $ 70,340 $ 92,300 Accounts receivable, net $ 29,800 $ 51,200 Long-term notes payable 79,800 109,000 Merchandise inventory 55,600 107.400 Common stock, $5 par value 210,000 206,000 Total assets 378,080 402, 500 Retained earnings 87,700 124,100 Connon stock, $5 par value 210,000 206,000 Total liabilities and equity $447,840 $531, 480 Retained earnings 93,900 63,489 Problem 13-5A Part 1 Required: 1a. For both companies compute the current ratio. (b) acid-test ratio, (caccounts receivable turnover (inventory turnover (c) days sales in Inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk, Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts receivable turnover. (inventory turnover, (e) days' sales in inventory, and ( 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 answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol 18 short term For both companies compute the current ratio. (A) Current Ratio Company Choose Numerator Choose Denominator: Barco Kyan Current Ratio - Current ratio 0101 0 to 1 TAGS 1A Acid Test Ratio Problem 13-5A Part 1 Required: 10. For both companies compute the (a current ratlo. (acid-test ratio. ( accounts receivable turnover (inventory turnover (@ days' sales in inventory, and (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 answers in the tabs below. LA Days Salin A Days Sal 18 short term Inv Uncol 1A Current 2A Acd Test 1 Acct Rec 1A Invent fatio Ratio Turn Turnover For both companies compute the acid-test ratio. th) Company Choosa Numerator: Acid-Test Ratio Choose Denominator: Barco Kyan Acid-Test Ratio Acid-test ratio 0 101 0101 . . 1 Required: 1a. For both companies compute the current ratio, (b) acid-test ratio, accounts receivable turnover, (inventory turnover (e) days' sales in inventory, and (6 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. ces Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol 1B short term For both companies compute the accounts (including notes) recevable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover Choose Denominator Accounts Receivable Turnover Accounts receivable turnover O times Barco Kyan Oltimos Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (6) acid-test ratio, (accounts receivable turnover, (a) Inventory turnover (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 11. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current 1A Add Test 1A Acct Rec 1A Invent 1A Days al in 1A Days Sal Ratio 18 short term Ratio Turn Turnover Inv Uncol For both companies compute the days' sales In Inventory Days Sales In Inventory Company Choone Numerator: Choose Denominator Days Days Sales In Inventory Days' sales in Inventory Barco o days Kyan o days ( 1A invent Turnever 1A Days Sal Uncol > Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover (c) Inventory turnover (e) days' sales in inventory, and (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 answers in the tabs below. Turn 18 short term 1A Current 1A Add Test 1A Act Rec 1A Invent A Days Salin 1A Days Sal Ratio Ratio Tumover Inv Uncol For both companies compute the days' sales uncollected, Days Sales Uncollected Company Choose Numerator: Choose Denominator Days Barco Kyan Days' Sales Uncollected Days' sales uncollected o days o days 1 Problem 13-5A Part 1 Required: 1a. For both companles compute the (a) current ratio, (b) acid-test ratio. (accounts receivable turnover. (inventory turnover ( days' sales in inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) 16. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 10 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Tum Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Botter short-term credit risk