! Required information Problem 17-5A (Algo) 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. Data from the current year- end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Company Kyan Company Barco Company Kyan Company Data from the current year's income statement Sales $ 20,500 $ 37,000 Cost of goods sold 39,400 55,400 Interest expense $780,000 593,100 8,300 Income tax expense 14,992 $ 879,200 636,500 16,000 24,272 Net income Basic earnings per share 163,608 202,428 4.09 5.16 3.76 3.92 84,440 5,800 330,000 134,500 6,950 305,400 $ 480,140 $ 539,250 $ 67,340 $ 100,300 78,800 109,000 200,000 134,000 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 26,800 $ 51,200 57,600 109,400 196,000 133,950 388,000 362,500 $ 480,140 $ 539,250 Common stock, $5 par value Retained earnings 200,000 196,000 120,792 85,186 Problem 17-5A (Algo) 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 (f) 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 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the current ratio. (a) Current Ratio Company Numerator: Denominator: Current Ratio Current assets Current liabilities Current ratio to Barco $ 150,140 $ 67,340 2.2 1 to Kyan $ 233,850 / $ 100,300 2.3 1 1A Current Ratio 1A Acid Test Ratio >