of 2 Required information Problem 13-5A (Static) 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 Barco Kyani Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets ook Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable. Retained earnings $ 19,500 $ 34,000 46,500) 64,600 84,440 132,500 5,000 6,950 290,000 304,400 $445,440 $542,450 Beginning of year balance sheet data Accounts receivable, net 80,600 101,000 Merchandise leventory Common stock, $5 par value 100,000 123, 300 206,000 Total assets 142,150 Common stock, 15 par value: rences Total liabilities and equity $445,440 $542,450 Retained earnings $ 61,340 $ 93,300 Sales Cost of goods sold Interest expense Income tax expense Net Income Basic earnings per share Cash dividends per share $770,000 $880,200 585,100 632,500 7,900 13,000 14,500 162,200 24,300 210,400 4.51 5.11 3.81 3.93 $ 29,800 $ 54,200 $5,600 398,000 107,400 382,500 100,000 206,000 98,300 93,000 Problem 13-5A (Static) Part 1 Required: 16. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (d) Aventory 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. < Prev 8 9 of 9 Next >