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 $ 19,500 $ 36,000 Accounts receivable, net 34,400 53,400 Merchandise inventory 84,340 142,500 Prepaid expenses 5,100 7,150 Plant assets, net 280,000 311,400 Total assets $ 423, 340 $ 550, 450 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $904,200 cost of goods sold 591,100 630,500 Interest expense 9,200 18,000 Income tax expense 14,608 24,962 Net income 145,092 230,738 Basic earnings per share 4.03 4.69 Cash dividends per share 3.75 4.01 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $101, 300 84,800 113,000 180,000 246,000 93,200 90,150 $423,340 $550,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 55,200 65,600 109,400 438,000 382,500 180,000 246,000 83,108 56,704 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 (6 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 1B short term