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 $810,000 $888,200 Cash $ 19,500 $ 38,000 Cost of goods sold 585, 100 640, 500 Accounts 39,400 receivable, net 58,400 Interest expense 8,500 12,000 Merchandise 84,940 140,500 Income tax expense 15,569 24,521 inventory Prepaid expenses 6,100 7,750 Net income 200,831 211,179 Plant assets, net 320,000 311,400 Basic earnings per share 5.29 4.67 Total assets $469, 940 $556,050 Cash dividends per share 3.76 3.91 1 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 94,300 Accounts receivable, net Long-term notes payable 82,800 113,000 Merchandise inventory 59,600 117,400 Common stock, $5 190,000 226,000 Total assets 388,000 382,500 par value Retained earnings 129,800 122,750 Common stock, $5 par value 190,000 226,000 Total liabilities $469,940 $556,050 Retained earnings and equity 71, 849 88,03 $ 26,800 $ 54,400 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 (1) 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 1A Acid 1A Acct 1A Invent 1A Days 1A Days 1B short Current Test Ratio Rec Turn Turnover Sal in Inv Sal Uncol term For both companies compute the current ratio. Current Ratio (a) Choose Company Numerator: 1 Choose Denominator: Current Ratio Current ratio to 1 to 1 = Barco Kyan = 1A Current Ratio 1A Acid Test Ratio >