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please help Required information Problem 13-5A (Algo) Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.) Summary Information from the
please help
Required information Problem 13-5A (Algo) 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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory prepaid expenses Plant assets, net Total assets $ 19,000 $ 33,000 36,400 51,400 84,840 136,500 5,700 7,200 320,000 303,400 $ 465,940 $ 531,500 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net Income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivablo, net Merchandise inventory Total assets Common stock, $par value Retained earnings $ 780,000 $.926,200 589,100 646,500 8,700 13,000 14,992 25,570 167,208 241, 130 4.18 5.85 3.73 3.96 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 61,340 $ 95,300 84,800 111.000 200,000 206,000 119,800 119,200 $ 465,940 $ 531,500 $ 27.800 63,600 438,000 200,000 101,792 $ 58,200 117,400 412,500 206,000 41,222 Problem 13-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover (inventory turnover (e days! Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts receivable turnover. () inventory turnover, (e) da sales in inventory, and (7 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 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 11 Days Sal 18 short term Ratio Ratio Tum Turnover Inv Uncol For both companies compute the current ratio. (a) Current Ratio Company Numerator: Denominator Current Ratio Current ratio lo 1 Barco Kyan 1 to 1 A Current Ratio 1A Acid Test Ratio > Step by Step Solution
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