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 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $880,209 Cost of goods sold 585,100 632.500 Interest expense 7,900 13,000 Income tax expense 14,800 24.300 Net income 162,200 210,400 Basic earnings per share 4.51 $.11 Cash dividends per share -3.81 3.93 Liabilities and Equity Current liabilities Long-ters notes payable Common stock, 55 par value Retained earnings Total liabilities and equity Begining-of-year balance sheet data 5 61,340 $ 93,300 Accounts receivable, net 80,880 101,00 Merchandise inventory 180,000 206,000 Total assets 123,300 142,150 Common stock, $5 par value $445, 440 $542,450 Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 189,000 206,000 98,300 93.600 Problem 13-5A Part 1 Problem 13-5A Part 1 Required: 1o. For both companies compute the (current ratio, (b) acid-test ratio, ( accounts receivable turnover, (inventory turnover (c) days 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 1A Current Ratio IA Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Uncol Inv 1B short term For both companies compute the current ratio. (15 Company Choose Numerator: Current assets $ 155,440 is 238,050 Current Ratio Choose Denominator: Current liabilities s 76,300 = $ 59.400 Current Ratio Current ratio 2.0 to 1 40 to 1 Barco Kyan Prey !!! Next > Answer is not complete. 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 Salin 1A Days Sal Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Choose Accounts Receivable Company Numerator: Choose Denominator: Turnover Net sales Average accounts receivable, net Accounts receivable turnover Barco $ 770 000 $ 61,400 - 125 times $ Kyan 880, 200 $ 54,200 % times 162