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 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 $917,200 Cash $ 19,000 $ 31,000 Cost of goods sold 594,100 634,500 Accounts receivable, net 39,400 52,400 Interest expense 8,300 14,000 84,340 5,100 290,000 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 $ 437,840 $532,600 Cash dividends per share. Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory Common stock, $5 par value Retained earnings data $ 67,340 $ 92,300 80,800 115,000 160,000 246,000 Total assets 129,700 79,300 $ 437,840 $ 532,600 132,500 Income tax expense 14,992 25,321 7,300 Net income 162,608 243,379 309,400 Basic earnings per share 5.08 4.95 3.76 3.98 $ 29,800 61,600 418,000 $ 52,200 111,400 402,500 160,000 246,000 87,412 31,737 Book P 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 (6 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 1A Days Sal in 1A Days Sal Turnover Inv 18 short term Uncol For both companies compute the current ratio. (a) Company Numerator Barco Kyan Current Ratio Denominator: Current Ratio Current ratio 001 0 to 1 1A Current Ratio IA Acid Test Ratio IA Acct Rec Turn 1A Invent 14 Days Sal in 14 Days Sal 18 short term Turnover For both companies compute the acid-test ratio. Uncol (b) Company Barco Kyan Acid-Test Ratio Numerator: Denominator Acid-Test Ratio Acid-test rafo 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio 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 Kyan Accounts Receivable Turnover Denominator: Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times For both companies compute the inventory turnover. (d) Company Numerator: Barco Kyan Inventory Turnover Denominator: Inventory Turnover Inventory turnover 0 times 0 times For both companies compute the days' sales in inventory. (0) Company Barco Kyan Numerator: 1 Days' Sales in Inventory Denominator: Days- Days' Sales in Inventory Days' sales in inventory 0 days 0 days For both companies compute the days' sales uncollected. ( Company Barco Kyan Numerator: Days' Sales Uncollected Denominator: Days Days' Sales Uncollected Days' sales uncollected 0 days 0 days Identify the company you consider to be the better short-term credit risk. Better short-term credit risk Uncol 18 bert, form)) Barco company Kyan company