Please answer both parts of the questions as they are both apart of one question.

15 Required information Problem 17-5A 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. Part 1 of 2 17 points 8 01:10:40 Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 31,000 Accounts receivable, net 36,400 54,400 Merchandise inventory 84,540 136,500 Prepaid expenses 5,700 7,050 Plant assets, net 340,000 312,400 Total assets $486,140 $541,350 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $923, 200 Cost of goods sold 583, 100 646,500 Interest expense 9,100 17,000 Income tax expense 15,377 25,487 Net income 192,423 234, 213 Basic earnings per share 4.58 5.42 Cash dividends per share 3.79 3.93 Liabilities and Equity Current liabilities Long-term notes payable Comon stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 96,300 85,800 111,000 210,000 216,000 121,000 118,050 $486,140 $541,350 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 53,200 55,600 115, 400 458,000 412,500 210,000 216,000 87,757 53,613 Problem 17-5A Part 1 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 (1 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 Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. Current Ratio (a) Company Choose Numerator: | Choose Denominator: = Current Ratio II Current ratio Barco to 1 Kyan 1 to 1 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio + + Acid-test ratio Barco + + to 1 Kyan + + / to 1 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. Days' Sales Uncollected (f) CompanyChoose Numerator: | Choose Denominator: x Days = Days' Sales Uncollected = Days' sales uncollected / Barco X days Kyan / = days 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk 1A Days Sal Uncol 1B short term Part 2 of 2 Summary information from the financial statements of two companies competing in the same industry follows. 17 points Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 31,000 Accounts receivable, net 36,400 54,400 Merchandise inventory 84,540 136,500 Prepaid expenses 5,700 7,050 Plant assets, net 340,000 312,400 Total assets $486,140 $541,350 Barco Kyan Company Company Data from the current year's income statement Sales $ 800,000 $923,200 Cost of goods sold 583,100 646,500 Interest expense 9,100 17,000 Income tax expense 15,377 25,487 Net income 192,423 234, 213 Basic earnings per share 4.58 5.42 Cash dividends per share 3.79 3.93 01:09:40 - Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 96,300 85,800 111,000 210,000 216,000 121,000 118,050 $486,140 $541, 350 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 53,200 55,600 115,400 458,000 412,500 210,000 216,000 87,757 53,613 Problem 17-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price-earnings ratios and (f dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio Choose Denominator: / Profit margin ratio Profit margin ratio % Barco Kyan % 2A Prof Mar Ratio 2A Tot Asset Turn 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover Total Asset Turnover (b) Company Choose Numerator: | Choose Denominator: Total Asset Turnover = Total asset turnover Barco 1 times Kyan = times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $105 per share, compute their price-earnings ratios. Price-Earnings Ratio (e) Company Choose Numerator: | Choose Denominator: = Price-Earnings Ratio Price-earnings ratio II Barco times Kyan 1 = times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio + + Acid-test ratio Barco + + to 1 Kyan + + / to 1 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. Days' Sales Uncollected (f) CompanyChoose Numerator: | Choose Denominator: x Days = Days' Sales Uncollected = Days' sales uncollected / Barco X days Kyan / = days 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk 1A Days Sal Uncol 1B short term Part 2 of 2 Summary information from the financial statements of two companies competing in the same industry follows. 17 points Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 31,000 Accounts receivable, net 36,400 54,400 Merchandise inventory 84,540 136,500 Prepaid expenses 5,700 7,050 Plant assets, net 340,000 312,400 Total assets $486,140 $541,350 Barco Kyan Company Company Data from the current year's income statement Sales $ 800,000 $923,200 Cost of goods sold 583,100 646,500 Interest expense 9,100 17,000 Income tax expense 15,377 25,487 Net income 192,423 234, 213 Basic earnings per share 4.58 5.42 Cash dividends per share 3.79 3.93 01:09:40 - Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 96,300 85,800 111,000 210,000 216,000 121,000 118,050 $486,140 $541, 350 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 53,200 55,600 115,400 458,000 412,500 210,000 216,000 87,757 53,613 Problem 17-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price-earnings ratios and (f dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio Choose Denominator: / Profit margin ratio Profit margin ratio % Barco Kyan % 2A Prof Mar Ratio 2A Tot Asset Turn 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover Total Asset Turnover (b) Company Choose Numerator: | Choose Denominator: Total Asset Turnover = Total asset turnover Barco 1 times Kyan = times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $105 per share, compute their price-earnings ratios. Price-Earnings Ratio (e) Company Choose Numerator: | Choose Denominator: = Price-Earnings Ratio Price-earnings ratio II Barco times Kyan 1 = times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment