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 Kyan Company Barco Company Company Data from the current year-end balance sheets Assets Cash $ 20,000 $31.000 Accounts receivable.net 34,400 55,400 Merchandise inventory 34,740136,500 Prepaid expenses 5.900 .150 04. Le $435,040 $534,450 Barco Coecany Data from the current years income statement $800,000 cost of boods sold 505,100 Interest expense 3.000 Income tax expense 15,377 Net Inco 181,52 Sasic earnings per share 4.56 cash dividends per share 3.74 $891,200 633500 13.000 24603 215,097 8.22 3.91 Liabilities and Equity Current liabilities Long-ters notes payable Common stock, ss par value Retained earnings Total libilities and equity $63.3 83. 200,00 37.900 a Beginning-of-year balance sheet data $99. Joe Accounts receivable.net 115.000 Merchandise inventory 206.00 Total assets 114-150 Con stock, 55 par value $534,450 Retained earnings $ 28,00 55200 57,600 107,400 328,00e 4025 200.000 206.00 55,977 60 145 Problem 13-5A Part 1 Required: 10. For both companies compute the current ratio. (b) acid-test ratio, accounts receivable turnover, sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) tb. Identify the company you consider to be the better short-term credit risk inventory turnover (e) days' Complete this question by entering your answers in the tabs below. Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, () in 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. Answer is complete but not entirely correct. 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 sa Uncol 18 short term For both companies compute the current ratio. Company Current Ratio Choose Denominator: Current liabilities 63,340 99,300 Current Ratio Current ratio Choose Numerator: Current assets 145,040 230,050 Barco 23 - = Kyan 123 A Current Ratio 1A Acid Test Ratio > Problem 13-5A Part 1 Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio, () accounts receivable turnover (d) inventory turnover 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec 1A Days Salin 1A Invent Turnover A Days Sal Uncol Sat 10 short term Turn Twe For both companies compute the accounts (including notes) receivable turnover. Company Choose Accounts Receivable Turnover Choose Denominator: Average accounts receivable, net 31.600 Accounts Receivable Turnover Accounts receivable turnover Net sales 253 800.000 391 200 ( 1A Acid Test Ratio 1A Invent Turnover > Problem 13-5A Part 1 Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnov 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 Answer is complete but not entirely correct. 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 Inv 1 A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected Days' Sales Uncollected Choose Denominator: Company ! * 365 Choose Nurnerator Current receivables, net 34.400 55,400 Days' Sales Uncollected Days' sales uncollected 15.7 days I 22.7 days Barco 800.000 891 200 Kyan x 365