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Required: 1a. For both companies compute the (6) current ratio, (b) acid-test ratio, (c) accounts receivable turnover (c) inventory turnover, (e) days sales in inventory,

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Required: 1a. For both companies compute the (6) current ratio, (b) acid-test ratio, (c) accounts receivable turnover (c) inventory turnover, (e) days sales in inventory, and (1 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 Radio 1A Acid Test Ratio 1A Auct Rec Turn 1 Anvent Turnover IA Days Salin 1A Days 5ml try Uncol For both companies compute the current ratio 18 short term Company Choose Numerator Current Ratio Choose Denominator Barco Kyan - Current Ratio Current ratio Oto 1 oto 1 1A Acid Test Ratio Required Information 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 anca Company Company data from the current year-end balance sheets Com Assets Data from the current year'a Income statement Sales 3810.000 920.200 Cash $ 20,000 $ 35,000 Nccounts receivable, not cost of goods sold 589.100 1,500 38,400 37,400 Merchandise inventory Interest expense 7.900 17.000 35.000 136,500 Thonetan expertise 15.569 25,404 Prepaid expenses 5,400 7.350 o income 197.0 231.206 350.000 304.00 Bate eachings per har 5.20 4.70 Total at cash dividende per share 3.79 3.4 Liabilities and Equity Beginning-of-year balance sheet data Current Libilities 0.57.240 1.92.100 Accounts receivable, 30.000 5200 Long-term noten payable 80,000 105,000 ha lavendery 0.0001400 Como took, 55 par value 190,000 245,000 Total assets 420.000 403.60 Retained earnings 160,200 90350 Common stock, 5 per value 190.000 206,00 Total libilities and equity 0630, 01409541.550 Het warnings 100,52 6. Problem 13-5A

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