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 Company Barco Kyan 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 84,70 136,500 Prepaid expenses 5,900 7,150 Plant assets, net 290,000 304,400 Total assets 5435,40 $534.450 Barco Company Data from the current year's income statement Sales $800,000 cost of goods sold 595,100 Interest expense 8,000 Income tax expense 15, 177 Net Income 181.523 Basic earnings per share 4.54 Cash dividends per share 3.74 $891,200 638,500 13,000 24603 215,097 5.22 3.91 Liabilities and Equity Current liabilities Longter notes payable Common stock, ss par value Retained earnings Total liabilities and equity $ 63,340 33,000 200,00 $ 99,300 115,000 206,000 Beginning of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 20,000 $ 53200 57.600 107,400 378,000 402.500 200,000 206,000 55,977 60 145 $435,040 5534,450 Problem 13-5A Part 1 Required: Complete this question by entering your answers in the tabs below. Ferences 1A Current Ratio 1A Acid Test Ratio IA Acct Rec Turn 1A Invent Turnover 1 A Days Sal in 1A Days Sal Uncol Inv 1B short term For both companies compute the current ratio. Current Ratio Company Choose Numerator: Choose Denominator: Current assets 1 Current liabilities Barco $ 145.040 I S Kyans 230,050 - = 63,340 99,300] = Current Ratio Current ratio 23 to 1 2.3 to 1 Cunom Ratio 1A Acid Test Ratio > Complete this question by entering your answers in the tabs below. LA Current A Add to 1A 1A Invent TA D Turnover IA Days Salt Turn the For both companies compute the add-test ratio. Test Choose Numeratori Choose Denminator Acid-Test Ratio Current assets + - A testato Complete this question by entering your answers in the tabs below. Deferences 1A Current Ratio 1A Add Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Satin LA Days Sal Uncol 13 short term For both companies compute the accounts (including notes) receivable turnover. Company Choose Numerator Accounts Receivable Turnover Choose Denominator - Accounts Receivable Turnover Average accounts receivable net Accounts receivable turnover Net sales Barco O mes Myan ( 1A Acid Test Ratio 1A Invent Turnover > 1A Current A acid Test Ratio 1 Acct Rec 1A Invent Turnover 1 A Days Salin Turn A Days Sal Uncol For both companies compute the days' sales in inventory - Days Sales in Inventory Company Choone Numerator: Choose Denominatoni x Merchandise inventory Cost of goods sold 14.740 is 505 100 Kyos S 360S 635 500 Days 365 Days' Sales in Inventory Days' sales in inventory 520 days 780 days x For both companies compute the days so uncollected Company Choose Numeraton Current receivables, net Barcos 34,000 s 55,400 Days' Sales Uncollected Choose Denominator X Days Days' Sales Uncollected Net sales 365 = Days sales uncollected 30000 365 157 days 91200 x 365 - 227 days 1A Days Salles my 18 hore >