24,500 Required information Problem 17-5A 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 Barco Kyan Company Company Company Company Data from the current year-end balance Data from the current year's income sheets statement Assets Sales $770,000 $880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 37,400 57,400 Interest expense 7,900 13,000 Current notes receivable (trade) 9,100 7,200 Income tax expense 14,800 Merchandise inventory 84,440 132,500 Net income 162,200 210,400 Prepaid expenses 5,000 6,950 Basic earnings per share 4.51 5.11 Plant assets, net 290,000 304,400 Cash dividends per 3.81 3.93 share Total assets $445,440 $542,450 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 29,800 $ 54,200 Current liabilities $ 61,340 $ 93,300 Current notes receivable (trade) Long-term notes payable 80,800 101,000 Merchandise inventory 55,600 107,400 Common stock, $5 par value 180,000 206,000 Total assets 398,000 382,500 Retained earnings 123,300 142,150 Common stock, $5 par value 180,000 206,206 Total liabilities and $445, 440 $542, 450 Retained earnings equity 98,300 93,600 54,400 0 Problem 17-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (a) inventory turnover, (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Tumover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the current ratio. Current Ratio Company Choose Choose Numerator: Denominator: Current assets Current liabilities Barco $ 155,440 1 61,340 Kyan $ 238,050 93,300 Current Ratio Current ratio 2.5 to 1 2.6 to 1 JA CUTE Rate 1A Acid Test Ratio > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Turn 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turnover In Uncol 1B short term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator Choose Denominator Cash Short-term Current investments receivables Current liabilities Barco $ 19,500 $ 37.400. 9,100 $ 61,340 - Kyan $ 34.000 $ 57.400 7,200 $ 93,300 Acid-Test Ratio Acid-1 ratio 1.1 to 1 1.1 1 0 . Answer is complete but not entirely correct. 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 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: Choose Denominator Cost of goods sold Average inventory Barco 585,100 $ 34.440 Kyan $ 632,500 $ 132,500 Inventory Turnover Inventory turnover 6.9 times times $ 4.8 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales in inventory. () Days' Sales in Inventory Choose Company Choose Numerator: Denominator: Days Merchandise inventory Cost of goods sold X 3650- Barco $ 84,440 / $ 585,100 365 Kyan S 132,500 $ 632,500 X 365 Days' Sales in Inventory Days' sales in inventory days 78.5 days X 52.7 1A Invent Turnover 1A Days Sal Uncol > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. ( Days' Sales Uncollected Company Choose Numerator: Choose Days Denominator: Current receivables, net Net sales 365- Barco s 9,100 $ 770,000 365 Kyan S 7,200 X/ $ 880,200 X 365 Days' Sales Uncollected Days' sales uncollected 4.3 days 30 days ( 1A Days Salin Inv 10 short term >