! Required information Problem 13-5A 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 $ 19,500 $ 38,000 Accounts receivable, net 33,400 50,400 Merchandise inventory 84,440 138,500 Prepaid expenses 5,700 7,550 Plant assets, net 330,000 311,400 Total assets $473,040 $545,850 Barco Kynn Company Company Data from the current year' income statement Sales $780,000 5893,200 Coat of goods sold 587,100 638,500 Interest expensie 8.900 12.000 Income tax expense 14,992 24,659 Net Income 169.000 219.041 Basie Garnings per share 4.69 5.05 Cash dividende per share 3.76 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 94,300 B0,800 113,000 180,000 216,000 142,900 122,550 $473,040 $545,850 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock. $5 par value Retained earnings $ 29,800 $ 52,200 55,600 113,400 458,000 422.500 180,000 216,000 109,252 77.309 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 (4 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 Satin Inv 1A Days Sal Uncol 18 short term For both companies compute the current ratio. (n) Current Ratio Company Choose Numerator: Choose Denominator: Current Ratio Barco Kyan Current ratio to 1 to 1 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 (o inventory turnover (@days sales in inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) fb. 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 Days Salin A Days Sal Iny Uncol 10 short term 1A Current 1A Acid Test LA Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the acid-test ratio Acid-Test Ratio th) Company Choose Numerator Choose Denominator Acid-Test Ratio Acid-testati Barco +++ Kyan 11 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, (a) 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 IA Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in A Days Sal Inv Uncol 16 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover Choose Denominator: = Accounts Receivable Turnover - Accounts receivable turnover times 1 Barco 1 times Kyan Required: 1a. For both companies compute the (6) current ratio. (b) acid-test ratio, ( accounts receivable turnover, (dinventory turnover (o 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 IA Days Salin A Days Sal Inv Uncol 18 short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover Choone Denominator Inventory Turnover Inventory tumover 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, (a) 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 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 Salin 1A Days Sal Inv Uncol 18 short term For both companies compute the days' sales In Inventory. Days Sales In Inventory Choose Denominator: X Company Choose Numerator: Days X - Days' Sales In Inventory Days' sales in inventory days days Barco X Kyan 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 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 IA Days Salin 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator * Days Company Choose Numerator: - Days' Sales Uncollected Days' sales uncollected days Barco 7 x x days X Kyan 1A Days Sal In Inv 1B short term> 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 (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 IA Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Uncol Inv 18 stort term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk