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 Canh $ 21,000 $ 37,000 Accounts receivable, net 36.400 53,400 Merchandise inventory 85,040 134,500 Prepaid expenses 5,900 7.300 Plant assets, net 310,000 304,400 Total asseto $458,340 $536,600 Barco kyan Company Company Data from the current year's income statement Sales $770,000 $911,200 Cost of goods sold 591,100 638,500 Interest expense 7.700 12,000 Income tax expense 14,800 25,155 Net Income 156,400 235,545 Basie earnings per share 4.12 Cash dividends per share 3.74 3.96 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $ 96,300 85,800 105,000 190,000 236.000 117,200 99,300 5458,340 $336,600 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 31,800 $ 52,200 57.600 117.400 438,000 422,500 190,000 236,000 102,920 50.667 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) 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 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. Current Ratio (a) Company Choose Numeratori Choose Denominator Current Ratio Current ratio 0 to 1 0 to 1 Barco Kyan 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 (c) 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (15) Company Choose Numerator: Choose Denominator 1 Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 Barco .. Kyan 1 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (o 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 Days Sal in 1A Days Sal Inv Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Tur over For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: - Inventory Turnover = Inventory turnover 0 times 0 times Barco 11 = Kyan 1 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (d) invent sales in inventory, and (1days' 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 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the days' sales in inventory. () Days Sales In Inventory Company Choose Numerator: Choose Denominator: * Days - Days Sales In Inventory - Days' sales in inventory o days o days Barco X Kyan X 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 turn 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 1A Acid Test 1 Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol 18 short term For both companies compute the days' sales uncollected. () Days Salos Uncollected CompanyChoose Numerator: Choose Denominator: x Days - Days' Sales Uncollected Days' sales uncollected Barco o days Kyan o days 1 X 1A Days Sal In In 18 short term> -ales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk +