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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $760,000 $884,200 Cash $ 21,800 $ 35,880 Cost of goods sold 596,100 644 500 Accounts receivable, net 33,488 55,400 Interest expense 8,800 17,000 Merchandise inventory 84,842 138,580 Income tax expense 14,608 24 410 Prepaid expenses 5,789S7,480 Net income 140,492 198,290 Plant assets, net 330,eee 307,488 Basic earnings per share 3.19 Total assets 5474,949 $543,700 Cash dividends per share 3.80 3.99 4.81 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 5 66,348 5 99,300 79,880 185,000 22e,eee 286, 103,800 133,480 5474,948 $543,780 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 27,800 $ 52,200 57,600 109,400 418,000 372,500 220,000 206,000 135,508 99,498 Problem 13-5A 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 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 Req 1B Short Uncol term For both companies compute the current ratio. Next > Retained earnings Total lobilities and equity | 108,800 130,000 0 1,900 4545 ,20 common stoek, 1 par wal Retalna tarnings 220,000 300 13 Problem 13-5A Part 1 Required: 1o. For both companies compute the la) current ratio. acid-test ratio. c) accounts receivable turnover (inventory turnover (eld sales in inventory, and (clays' 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. IA Current 1 Acid Test Ratio LA Act Rec Turn A Days Salin Ratio 1A Invent Turnover 1A Days Sal Reg 1B Short Unco term For both companies compute the add-test ratio. Acid Test Ratio Company Choose Numerator: Choose Denominator: Ad Test Ratio |- |- | | |arco Ryan arch 4 4 . Retained earnings Problem 13-5A Part 1 Required: in. For both companies compute the (a) current ratio. (b) acid-test ratio, accounts receivable turnover (inventory tumover, (e) da sales in inventory, and (days' sales uncollected (Do not round intermediate calculations.) ib. 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 cct Rec IA Invent Turnover 1A Days Sal In A Days Sal Reg 1B Short Uncol term For both companies compute the accounts (including notes) receivable turnover. c) Accounts Receivable Turnover I Choose Denominator - Accounts Receivable Turnover Company Choose Numerator: = Accounts receivable turnover Barco ( 1A Aeid Test Ratio | 1A Invent Turnover > earch WER Problem 13-5A Part 1 Required: 1o. For both companies compute the 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. A Adid Test LA Current Ratio Reg 18 Short 1 Acct Rec Turn 1A Invent EIA Days Sal In Turnover ny A Days Sal Une Ratio For both companies compute the inventory turnover. d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: - Inventory Turnover Barco Ksan T Prev 1 2 of 2 !! Next > 474,540 5543.00 Retained earnings Problem 13-5A Part 1 Required: 1o. For both companies compute the (al current ratio. (b) acid-test ratio, id accounts receivable turnover () inventory turnover, le days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) Ib, Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. TA Current Ratio A Add Test Ratio 1A Acet Rec Turn 1A Invent Turnover 1 Dars Sal In n A Days 5a Uncol Reg 18 Short term For both companies compute the days' sales In Inventory. Days' Sales in Inventory Choose Denominator X Company Choose Numerator: Days - Days' Sales In Inventory Days' sales in inventory Barco days days Kyan Prev 1 2 of 2 !!! Next > a E e a a a " 30 40 44 rning etsin Problem 13-5A Part 1 Required: in. For both companies compute the current ratio, (b) acid-test ratio, accounts receivable turnover. (dinventory turnover (e days sales in inventory, and (5 days' sales uncollected (Do not round intermediate calculations.) Tb. Identify the company you consider to be better short-term credit risk Complete this question by entering your answers in the tabs below. 1A Auct Rec IA Current Ratio A Acid Test Ratio 1A Invent Turnover 1 A Days Sal In Iny ny 1A Days Sal Reg 18 Short Uncol term 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 days Kyan Prev 1 2 of 2 !!! Next > Merchandise inventory 34,80 138.500 Income tax expense 5.700 7.403 letno 330,000 37,100 Basic earnings per share 3474,940 1543, 700 Cash dividends per share 14.603 140,492 3.19 3.10 24/10 198,290 4.51 3.99 Total ariet Liabilities and Equity Current liabilities Long ter notes payable on stock, 35 par value Retained earnings Total Tibilities and equity C $ 66,340 79,300 220,000 108,800 $474,940 Beginning of year balance sheet data $ 99, Jee Accounts receivable, net 105,00 Merchandise Inventory 206,000 Total assets 133,400 Cowon stock, $ par value $543,700 Retained earnings $ 27,00 57,600 418.000 220,00 135,500 52200 109,400 372,500 206,00 59,498 Problem 13-5A Part 1 Required: 1o. For both companies compute the cal current ratio (6) acid-test ratio. Id accounts receivable turnover (inventory turnover. (e) days sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) Tb. Identify the company you consider to be better short-term credit risk Complete this question by entering your answers in the tabs below LA Current 1A Acid Test 1A Act Ret 1A ment Turnover IA Days Salin Reg 15 Short A Days Sal Uncol Identify the company you consider to be the better short-term credit risk. Better short term credrik