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 $ 21,000 $ 36,000 Accounts receivable, net 33,400 51,400 Merchandise inventory 84,340 132,500 Prepaid expenses 5,300 7,650 Plant assets, net 330,000 304,400 Total assets $474,040 $531,950 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $888,200 Cost of goods sold 588, 100 650,500 Interest expense 7,900 17,000 Income tax expense 15,377 24,521 Net income 188,623 196, 179 Basic earnings per share 4.72 4.34 Cash dividends per share 3.81 3.94 | Beginning-of-year balance sheet data Accounts receivable, net $ 27,800 $ 53,200 Merchandise inventory 55,600 109,400 Total assets 408,000 412,500 Common stock, $5 par value 200,000 226,000 Retained earnings 88,677 71,559 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $103,300 83,800 113,000 200,000 226,000 124,900 89,650 $474, 040 $531,950 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1 B short term For both companies compute the current ratio. (a) Current Ratio 1 Choose Denominator: Company Choose Numerator: Current Ratio Current ratio Barco = to 1 1 1 Kyan to 1 1A Current Ratio 1A Acid Test Ratio 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1 B short term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: = Acid-Test Ratio Acid-test ratio Barco + to 1 Kyan + + / to 1 1A Current Ratio 1A Acct Rec Turn 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1 B short term For both companies compute the accounts (including notes) receivable turnover. Company Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: = Accounts Receivable Turnover Accounts receivable turnover 1 times = Barco Kyan 1 = times 1A Acid Test Ratio 1A Invent Turnover > 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1 B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: 1 Choose Denominator: 1 = Inventory Turnover Inventory turnover times = Barco 1 Kyan 1 times 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1 B short term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory days days Barco = Kyan 1 x 1A Invent Turnover 1A Days Sal Uncol > 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 Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. (f) Days' Sales Uncollected 1 Choose Denominator: Company Choose Numerator: Days 7 = Days' Sales Uncollected = Days' sales uncollected days Barco / Kyan 1 X days