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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $70,000 $895,200 Cash $ 22,500 $ 38,000 Cost of goods sold S87,100 636.500 Accounts receivable, not 38,400 58,400 Interest expense 9,000 16,000 Merchandise Inventory 84,540 135,500 Income tax expense 14,992 24.714 Prepaid expenses 5.200 7.100 Net Income 169,900 217,986 Plant assets, net 350,000 305,400 Basic carnis per share 9.29 Total assets 3501,940 $547, 400 Cash dividends per share 3.79 4.01 Libilities and Equity Beginning of-year balance sheet data Current liabilities $ 0,40 $10,300 Accounts receivable, net 5 29,800 355,200 Lopeter notes payable 10.00 105,000 Merchandise inventory 63,600 115,400 Common stock, 35 par value 180.000 206,000 Total assets 450.000 382,500 Metained earnings 125,000 146, 100 Common stock, $5 par value 180,000 206,000 Total liabilities and susty $501,940 $547.400 Retained carings 143, 332 93 334 Problem 13-5A Part 1 Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (1) 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. IA Current 1 Acid Test 1A Acct Rec 1A Invent 1A Days Salin A Days Sal Ratio Ratio Turn Turnover Inv Uncol 10 short term For both companies compute the current ratio, (a) Current Ratio Company Choose Numerator Choose Denominator: Current Ratio Current to Barco to 1 to 1 1A Acid Test Ratio >