Required information Problem 13-5A 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. Barco Ryan Company Company Data from the current year-end balance sheets Assets Cash $ 20,500 $ 31,000 Accounts receivable, net 36,400 51,400 Merchandise inventory 85,040 140,500 Prepaid expenses 5, 2007 , 200 Plant assets, net 310,000 305,400 Total assets $457,140 $535,500 Barco Kyan Company Company Data from the current year'income statement Sales $780,000 $924,200 Cont of goods sold 586,100 636,500 Interest expense 9,100 18.000 Income tax expense 14,992 25,514 Net Income 169,808 244,186 Basie earnings per share 4.25 5.93 Cash dividende per share 3.74 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 65 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 66,340 $ 92,300 Accounts receivable, net 82,800 105,000. Merchandise inventory 200,000 206,000 Total assets 108,000 132,200 Common stock, 05 par value $457,140 $535,500 Retained carnings $ 29,800 $ 54,200 59,600 117,400 388,000 412.500 200.000 206,000 87,792 49,930 Problem 13-5A Part 1 Required: 1a. For both companies compute the current ratio, (b) acid-test ratio, 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 better short-term credit risk. Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, () accounts receivable turnover, (d) inventory turnover, (e) day sales in Inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 Turn 1A Invent Turnover 1A Days Sal in Ratio 1A Days Sal Uncol Req 1B Short term Inv For both companies compute the current ratio. Current Ratio Choose Denominator: Company Choose Numerator: = Current Ratio Current ratio Barco to 1 Kyan 1A Acid Test Ratio > Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, accounts receivable turnover, () inventory turnover, (e) days' sales in Inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 Iny 1A Days Sal Uncol Reg 18 Short term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Barco Kyan ( 1A Current Ratio 1A Act Rec Turn > Problem 13-5A Part 1 Required: 1a. For both companies compute the (d) current ratio. (b) acid-test ratio, 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 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 A Days Sal in Inv 1A Days Sal Reg 1B Short Uncol term For both companies compute the accounts (including notes) receivable turnover. Company Choose Numerator Accounts Receivable Turnover / Choose Denominator Accounts Receivable Turnover Accounts receivable turnover times Barco Kyan times Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover, (d) inventory turnover, (e) day sales in Inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Reg 1B Short For both companies compute the inventory turnover. (d) Inventory Turnover Choose Denominator: Company Choose Numerator: ntory Turnover Inventory turnover Barco Kyan 1A Aceta Turn Duys Salinin > Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, accounts receivable turnover. (d) Inventory turnover, (e) days' sales In Inventory, and (7 days' sales uncollected. (Do not round Intermediate calculations.) 1b. Identify the company you consider to be 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 Inv 1A Days Sal Uncol Reg 1B Short term For both companies compute the days' sales in inventory (e) Days' Sales in Inventory Choose Denominator: x Company Choose Numerator: Days - Days' Sales in Inventory - Days' sales in inventory days days Barco Kyan ( 1A Invent Turnover 1A Days Sal Uncol > Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, (inventory turnover, (e) days" sales In Inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) 1b. Identify the company you consider to be 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 Reg 1B Short Uncol term Iny For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: Company Choose Numerator: Days - Days' Sales Uncollected Days' sales uncollected Barco days Kyan days Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts receivable turnover, () inventory turnover, (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round Intermediate calculations.) 1b. Identify the company you consider to be 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 Iny 1A Days Sal Uncol Reg 1B Short term Identify the company you consider to be the better short-term credit risk. Dashuri ( 1A Days Sal Uncol