! 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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,500 $ 35,000 Accounts receivable, net 35,400 59,400 Merchandise inventory 85,040 134,500 Prepaid expenses 5,700 7,300 Plant assets, net 340,000 307,400 Total assets $488,640 $543,600 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $911,200 Cost of goods sold 594, 100 640,500 Interest expense 9,300 14,000 Income tax expense 14,608 25,155 Net income 141,992 231,545 Basic earnings per share 3.74 4.91 Cash dividends per share 3.81 4.02 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 91,300 82,800 117,000 190,000 236,000 146,500 99,300 $488,640 $543,600 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 32,800 $ 54,200 63,600 109,400 418,000 402, 500 190,000 236,000 149,288 57,499 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 (6 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. 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 (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 Ratio 1 Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1 A Days Sal in Inv 1A Days Sal Uncol 1 B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio 1 Choose Denominator: Current Ratio Current ratio 0 to 1 Barco Kyan 0 to 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 (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1 A Days Salin Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: = Accounts Receivable Turnover = Accounts receivable turnover 0 times Barco = Kyan 0 times 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 (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1 A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the inventory turnover. Inventory Turnover (d) Company Choose Numerator: | Choose Denominator: = Inventory Turnover Inventory turnover 1 Barco 1 0 times Kyan 1 0 times 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 days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days 1 Barco Kyan 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 (6 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 days' sales uncollected. (f) CompanyChoose Numerator: Current receivables.net Days' Sales Uncollected 1 Choose Denominator: x Days i Net sales x 365 = Days' Sales Uncollected = Days' sales uncollected 0 days Barco 1 X = Kyan 1 x = 0 days