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Please help correct fields in red. Thanks. Required information Problem 13-5A Comparative ratio analysis LO A1, P3 The following information applies to the questions displayed
Please help correct fields in red. Thanks.
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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $880,200 585,100 632,500 7,900 13,000 14,800 241300 162,200 210,400 $ 19,50034,000 Cost of goods sold 37,400 57,400 Interest expense 9,100 7,200 Income tax expense 84,440 132,500 Net income 5,000 6,950 Basic earnings per share 4.51 3.81 290,000 394,400 Cash dividends per share $445,440 $542,450 3.93 Beginning-of -year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 29,800541200 $61,340 93,300 Current notes receivable (trade) 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300142,150 Common stock, $5 par value 445,440 $542,45 Retained earnings 55,600 107 400 398,000 382,500 180,000 206000 98,300 93,600 Problem 13-5A Part 1 Required 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (a) inventory 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 Answer is complete but not entirely correctStep by Step Solution
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