Problem 17-5A (Algo) Comparative ratio analysis LO P3Skip to question

[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's income statement Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 810,000 593,100 7,800 15,569 193,531 5.38 3.80 $ 993,200 632,500 13,000 24,935 232,765 5.39 4.02 $ 19,000 $ $ 30,000 Cost of goods sold 39,400 52,400 Interest expense 84,440 132,500 Income tax expense 5,900 7,350 Net Income 360,000 312,400 Basic earnings per share $588,740 $ 534,650 $ Cash dividends per share Beginning-of-year balance sheet data $ 70,340 $ 193,300 Accounts receivable, net 85,880 115,888 Merchandise inventory 180,000 216,000 Total assets 172,600 108,35 Common stock, $5 par value $588,740 $ 534,650 Retained earnings $ 32,800 63,600 418,000 180,000 115,869 $ 52,200 105,400 492,500 216,000 41,249 Problem 17-5A (Algo) 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 (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 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Current Ratio Denominator: Numerator: = Current Ratio Current ratio 0 to 1 A Barco Kyan 0 to 1