Problem 13-5A 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. Barco Kyan Company Company Data from the current year-end balance sheets Assets $ 20,000 $ 36,000 Accounts receivable, net 38,400 57.400 Merchandise inventory 85,040 136,500 Prepaid expenses 5,400 7,350 plant assets, bet 350,000 304,400 Total assets $498,840 $542,650 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $920,200 Cost of goods sold 589, 100 645,500 Interest expense 7,900 17,000 Income tax expense 15,569 25,404 Net Income 197,431 231,296 Basic earnings per share 5.20 Cash dividends per share 3.77 3.94 4.70 Liabilities and Equity Current liabilities Long-term totes payable Common stock, 55 per value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $67.340 $92,300 Accounts receivable, net 80.800 105,000 Merchandise inventory 190.000 246,000 Total assets 160.700 98,350 Common stock, 55 par value $493, 040 $541,650 Retained earnings $ 30,800 $ 58,200 63,600 111.400 428,000 102,500 190,000 246,000 106,529 60,902 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a current ratio, (b) acid-test ratio, ( accounts receivable tumover, (d) inventory turnover (el days 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 LA Acct Rec IA Invent Ratio Ratio Tum Turnover For both companies compute the current ratio, 1A Days Sal in 1A Days Sal Inv Uncol 18 short term Company Choose Numeratori Current Ratio Choose Denominator Barco Kyan - Current Ratio Current ratio O tot = O tot 1 1 1A Acid Test Ratio)