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 $ 19,5ee $ 31,800 Accounts receivable, net 39,400 56,480 Merchandise inventory 84,440 132,503 Prepaid expenses 5,180 7,480 Plant assets, net 339,000 386, 480 Total assets $478,448 $533,709 Barco Kyan Company Company Data from the current year's income statement Sales $760,eee $891,200 Cost of goods sold 584, 188 65e|5ee Interest expense 8,900 16, eee Income tax expense 14,608 246e3 Net income 152,392 200,897 Basic earnings per share 4.01 4.27 Cash dividends per share 3.78 4.81 1 Beginning-of-year balance sheet data Accounts receivable, net $ 25,888 $ 522ee Merchandise inventory 55,600 107,488 Total assets 418,800 372 see Common stock, $5 par value 190,00 246,00 Retained earnings 139,548 7e 595 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $ 99, 300 79,800 115,808 199,080 246,800 148,388 73,400 5478,440 $533,700 Problem 13-5A Part 1 Required: 10. 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.) 15. 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 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 1B short term Ratio Ratio Turn Turnover Inv Uncol For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: Choose Denominator = Current Ratio = Current ratio Barco oto 1 Kyan oto 1 = = KIA Cares Fatin 1A Acid Test Ratio > Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable turnover. (c) 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 14 Acct Rec Ratio Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol 18 short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: + + + III Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 Barco Kyan Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable tumover. (d) inventory turnover. (e) days" sales in inventory, and (6 days' sales uncollected. (Do not round Intermedlate 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 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio 18 short term Turn Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: Choose Denominator = Accounts Receivable Turnover = Accounts receivable turnover Barco 0 times Kyan = 0 times Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts receivable tumover. (c) 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 Sal in 1A Days Sal Iny Uncol 18 short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: 1 Choose Denominator = Inventory Turnover Barco 1 = Inventory turnover 0 times 0 times Kyan Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable tumover. (d) inventory turnover. (e) days sales in inventory, and (7 days' sales uncollected. (Do not round Intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. Turn Uncol 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 11 Days Sal Ratio Ratio Turnover For both companies compute the days sales in inventory. Iny (e) Company Choose Numerator: Days Sales in Inventory Choose Denominator: x Days X = Days Sales in Inventory = Days' sales in inventory 0 days 0 days Barco XX #1 Kyan = 1A Invent Turnover 1A Days Sal Uncol > Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable tumover. (c) 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 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv 18 short term Uncol For both companies compute the days' sales uncollected. (1) Days' Sales Uncollected CompanyChoose Numerator: Choose Denominator: x Days = Days' Sales Uncollected = Days' sales uncollected Barco o days Kyan 1 XXX = 1 0 days Problem 13-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable tumover. (c) 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 14 Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term Identify the company you consider to be the better short-term credit risk. Beiter short-term credit risk Uncol 16 short Barco company Kyan company