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 (f) days sales uncollected. (Do not round intermediate calculations.). This is the drop menu options for c, d, and e: accounts receivable, cost of goods sold, current assets, current liabilities, net sales, average account receivable, net , end of year accounts receivable, average inventory, merchandise inventory, 30 days or 365 days

Required information Problem 13-5A Comparative ratio analysis LO A1, 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 Company Company Data from the current year-end balance sheets Assets Cash $ 21,000 $ 35,000 Accounts receivable, net 33,400 55,400 Merchandise inventory 84,840 138,500 Prepaid expenses 5,700 7,400 Plant assets, net 330,000 307, 400 Total assets $474,940 $543,700 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $884,200 cost of goods sold 596,100 644.500 Interest expense 8,880 17,000 Income tax expense 14,608 24,410 Net income 140,492 198,290 Basic earnings per share 3.19 4.81 Cash dividends per share 3.80 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 99,300 79,800 105,000 220,000 206,000 108,800 133,489 $474,940 5543,700 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 27,800 57,6ee 418,000 220,000 135,588 $ 52,200 109,480 372,500 206,000 99,498 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover, (d) inventory turnover. (e) days sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 IA Invent Turnover 1 A Days SalinIA Days Sal Uncol Reg 1B Short term For both companies compute the accounts (including notes) receivable turnover. $474,940 5543,709 Retained earnings Total Itabilities and Equity oblem 13-5A Part 1 quired: ... For both companies compute the (a) current ratio, (b) acid-test ratio, (Caccounts receivable turnover (o) invento ales in inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) b. Identify the company you consider to be 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 Sal in Inv 1A Days Sal Reg 1B Short Uncol term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover Choose Denominator: - Accounts Receivable Turnover S = Accounts receivable turnover 0 times 0 times Barco Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Acct Rec 1A Current AV 1A Acid Test Ratio 1A Invent Turnover 1 A Days Salin Inv 1A Days Sal Req 1B Short Uncol term Ratio Turn La For both companies compute the inventory turnover. way Inventory Turnover TI Company Choose Numerator: Choose Denominator Inventory Turnover Inventory turnover O times V O times Barco Kyan blem 13-5A Part 1 wired: For both companies compute the (a) current ratio. (b) acid-test ratio. (Caccounts receivable turnover, (dhin es in inventory, and (days' sales uncollected (Do not round intermediate calculations.) Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Acct Rec 1A Current Ratio 1A Acid Test Ratio 1A Days Sal in 1A Invent Turnover 1A Days Sal Uncol Reg 1B Short term Turn Iny For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory. I Choose Denominator: x Days Company Choose Numerator: = Days' Sales in Inventory Days' sales in inventory ANNO days 0 days Barco L Kyani