Problem 17-5A 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. 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 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Problem 17-5A Part 1 Barco Company Kyan Company $19,500 37,400 9,100 $ 34,000 57,400 7,200 132,500 84,440 5,000 6,950 290,000 304,400 $445,440 $542,450 $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 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 receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings Barco Company $770,000 585, 100 7,900 14,800 162, 200 4.51 3.81 Kyan Company $880, 200 632,500 13,000 24,300 210,400 5.11 3.93 400- $ 29,800 $ 54/200 0 0 55,600 107/400 398,000 382,500 180,000 206,000 93,600 98,300 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) 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.

Problem 17.5A Comparative ratio analysis LOA1,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. Problem 17-5A Part 1 Required: turnover, ( ) doys' sales in inventory, and (\$) days' sales uncollected. (Do not round intermediote calculotions.) 1b. Identify the company you consider to be the better short-term credit risk. For both companies compute the current ratio. For both companies compute the acid-test ratio. For both companies compute the accounts (including notes) receivable turnover. For both companies compute the inventory turnover. For both companies compute the days' sales in inventory. For both companies compute the days' sales uncollected