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 $270,000 Cash $20,000 $ 33,000 Cost of goods sold 596,100 Accounts receivable, net 36,400 58,400 Merchandise inventory 84,540 136,500 Prepaid expenses 5,800 Plant assets, net Total assets Liabilities and Equity Current liabilities 370,000 $516,740 7,200 310,400 $545,500 Interest expense Income tax expense Net Income Basic earnings per share 8,700 5908,200 644,500 13,000 14,800 25,073 150,400 225,627 3.76 4.99 Cash dividends per share 3.80 4.03 Long-term notes payable Common stock, $5 par value Retained earnings $ 65,340 79,800 200,000 171,600 $91,300 113,000 226,000 115,200 Total liabilities and equity $ 516,740 $ 545,500 Beginning-of-year balance sheet data Accounts receivable, not Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 $ 54,200 61,600 388,000 107,400 392,500 200,000 226,000 173,200 71,729 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 (5 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 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal 1B short term Uncol Turnover For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: Current Ratio A 1 Current ratio 0 to 1 0 to 1 1A Current Ratio 1A Acid Test Ratio > Required information Required: 10. 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 (5) 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. LA Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in Turnover Inv 1A Days Sal Uncol 18 short term For both companies compute the acid-test ratio. (b) Company Barco Kyan Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio Acid test ratio 0 10 1 0 10 1 <1a current ratio 1a acct rec turn> < Prev 5 of 6 Next > 5 16.66 points effook Print Required information Required: 16. For both companies compute the () current ratio, (0) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days sales in Inventory, and (5 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 1A Acid Test Ratio Ratio IA Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Unicol 18 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Numerator: Barco Kyan Accounts Receivable Turnover Denominator: Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times <1a acid test ratio 1a invent turnover> Chapter 13: Homework Saved 5 16.66 points eBook Required information Required: 16. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts receivable turnover. (d) inventory turnove 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. Punt 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 15 short term For both companies compute the inventory turnover (d) Company Numerator: Barco Kyan Inventory Turnover Denominator Inventory Turnover Inventory turnover 0 times O times: <1a acct rec turn 1a days sal in inv> 5.66 5 eBook Print Required information Required: 16. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (d) Inventory tumover. (e) days' sales in inventory, and (0) 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 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the days' sales in inventory. (0) Company Barco Numerator: Days' Sales in Inventory. Denominator: Kyan Days Days' Sales in Inventory x * = Days sales in inventory 0 days 0 days < 1A Invent Turnover 1A Days Sal Uncol > 5 6.66 oints ellook Part Required information i 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 1A Acct Rec Ratio Turn Inv 1A Invent 1A Days Sal in LA Days Sal Turnover Unicol 18 short term For both companies compute the days' sales uncollected. 35 Company Barco Kyan Numerator: Days' Sales Uncollected Denominator: X Days Days Sales Uncollected Days sales uncollected 0 days 0 days