4 Required information Problem 17-5A Comparative ratio analysis LO A1, P3 The following information applies ro the questions displayed below) Summary information from the financial statements of two companies competing in the same industry follows Pert 1 of 2 25 points Barco Kyan BarcoKyan Company Company Copany Company Data froas the current year's incose statesent Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Herchandise inventory Prepaid expenses Plant assets, net Total assets $770,000 $880,200 585, 100 632,500 7,900 13,000 14,800 24,300 162,200 210,400 4.51 5.11 3.93 s 19,500 34, 000 Cost of goods sold 37,400 57,400Interest expens e eBook 9,1007,200 Income tax expense 84,440 132,500 Net incone 5, 000 6,950 Basic earnings per share 298, 000 304,400 Cash dvdends per share 3.81 Pint 1445,440 3542,450 Peler Beginning-of year balance sheet data Accounts recelvable, net s 29,800 54,200 Liabilities and Equity Current labilities Long-ters notes payable Common stock, 5 par value Retoned earnings Tot al Iiabiiities and equity s 61,340 3 93,300 Current hotes recefvable (trade) 60, 800 101,000 Merchandise inventory 180, 000206,000 Total assets 123,300 142 150 Common stock, $5 pan value $445,440 $542,450 Retained earnings 55,600 107,400 398, 000 382, 500 180, 000 206,00 98,300 93,600 Problem 17-5A Part 1 4 Problem 17-5A Part 1 Pen 1 ot 2 Required le. For both companies compute the (el current ratio. (b) acid-test ratio. (d) accounts (including notes)receivable turnover, (o) inventory turnover. (e) days' sales in inventory and days' sales uncollected (Do not round intermediate calc ulations) 1b. Identify the company you consider to be the better shart-term credt risk 25 points Complete this question by entering your answers in the tabs below A Current 1A Acid Test 1A Acct Rec 1A Invent IA Days Sal 1A Days Sal 18 short term Turnover Turn in Inv Book Ask Phint Peference Ratio Ratio For both companies compute the current ratio Current Ratio Current Ratio Current ratio 1.9 to 1 26 to 1 Comparry Choose Numerator: Choose Denominator: urment assets Current liabilities 116,440 238,050s 61,340 93,300 Barco Kyan A Acid Test Ratio> 4 Problem 17-5A Part 1 an t of 2 Requirecd: For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts (includ nover. (e) days sales in inventory, and days' sales uncollected (Do not round intermediate calculations.) ing notes) receivable turnover. (c) inventory 1b. Identify the company you consider to be the better shon-term credit risk Complete this question by entering your answers in the tabs 0135 13 below 1A Current | 1A Aoid Test | 1A Acct Rec . A Dars Sal || 1A Days, Sal JAInvent eBook Ask Print ferences Ratio Uncol 1B short te Turn Turnover in Inv For both companies compute the acid-test ratio Acid Test Ratio Comparny Choose Numerator: Choose Denominator:Acid Test Acid-test ratio Barco o to 1 0 to 1 Kyan 4 Problem 17-5A Part 1 Pert 1 of 2 Required: la. For both companies compute the (o) current ratio. (b) acid-test ratio, (d accounts (including notes)receivable turnover, (o) inventory turnover. (e) days' sales in inventory, and (h days' sales uncollected (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk 25 points Complete this question by entering your answers in the tabs below 0134 37 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal 1A Days Sal B shot 1B short te eBook Ask Print Peferencee Turn Turnover in Inv Uncol For both companies compute the accounts (including notes) receivable turnover Accounts Receivable Turnover Choose Denominator: ompany Choose Nurmer ator: Accounts Receivable Tur Accounts receivable tumover 0 times o times Barco Kyan 4 Problem 17-5A Part 1 Pen 1 of 2 Required: te. For both companies compute the () current ratio, (b) acid-test ratio () accounts (including notes) receivable turnover. (c) inventory turnover. (e) days' sales in inventory and (days' sales uncollected. (Do not round intermediate celculations.) 1b. Identify the company you consider to be the better shor-term credit risk 25 points Complete this question by entering your answers in the tabs below 2012.20) 1A Current 1A Acid Test JA Acct Rec 1A Invent 1A Days Sal 1A Days Sal 18 short Turnover in Inv Uncol Book Ask Piet eforence Ratio Ratio For both companies compute the inventory turnover Invent tory Turnove Company Choose Numer ator:Choose Denoninator: Inventory Turnover Inventory turnover 0 times 0 times Harco Kyan IA Acct Rec Turn 1A Days Sal in Inw > 4 Problem 17-5A Part 1 Required: la. For both companies compute the (oj current ratio. (b) acid-test ratio. (c) accounts (including notes) receivable turnover, (o) inventory turnover. (e) days' sales in inventory, and ( days' sales uncollected. (Do not round intermediate calc ulations.) 1b. Identify the company you consider to be the better short-term credit risk -t of 2 25 points Complete this question by entering your answers in the tabs below 01 34 01 1A Current1A Acid Test 1A Acct Rec 1A Invent LA Days Sal 1A Days Sal 18 short term Turn Turnover in Inv Uncol oBook Ask Prant Poterence Ratio Ratio For both companies compute the days' sales in inventory Days' Sales in Inventoy Days' Sales in Inventory Days' sales in inventory Choose Numerator: Choose Denominator: Days XDure sales in inventory days Barco Kyan 0 days 1A Invent Turnover A Days Sal Uncol > 4 Problem 17-5A Part 1 Pert 1 of 2 Required le. For both companies compute the (o) current ratio, (b) acid-test ratio. ( accounts including notes) receivable turnover. (d) inventory turnover. (e) days' sales in inventory, and (n days' sales uncollected (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk 25 points Complete this question by entering your answers in the tabs below ct3346 1A Acid Test Ratio 1A Acct Rec Turn IA Days Sal | A Days Sal 1 1A Current 1A Invent Turnover 1B short te rm in Inv Uncol eBook Ask Pyint Ratio For both companies compute the days' sales uncollected. Company Choose Numerator: , Choose Denominator: x Days = Days' Sales Uncollected 0 days 0 days Barco Kyan 1A Days Sal in Im 1B short term >