! 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 Data from the current year's income statement Assets Sales $ 790,000 $ 900,200 Liabilities and Equity Long-term notes payable Common stock, $5 par value Retained earnings Cash $ 20,500 $ 32,000 Accounts receivable, net 38,400 59,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets Current liabilities 311,400 $ 429,940 $ 550,800 $ 67,340 $ 103,300 109,000 216,000 Total assets 122,500 Total liabilities and equity $ 429,940 $ 550,800 84,940 6,100 280,000 79,800 160,000 122,800 140,500 7,500 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 Merchandise inventory Common stock, $5 par value Retained earnings 590,100 7,800 638,500 10,000 15,185 24,852 176,915 226,848 5.53 3.73 5.25 4.03 $ 27,800 $ 57,200 61,600 111,400 438,000 402,500 160,000 216,000 65,245 69,748 Problem 13-5A (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 (f) 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 Invent 1A Days Sal in 1A Days Sal Turnover Inv 1B short term Uncol 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: = Current Ratio Current ratio 0 to 1 0 to 1 < 1A Current Ratio 1A Acid Test Ratio >