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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

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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. Barco Company kyan Company Data from the current year-end balance sheets Assets Barco Company Kyan Company Cash $ 20,500 37,400 84,840 5,900 330,000 5.478,640 $ 32,000 58.400 132,500 7.400 303,400 $ 533,700 Data from the current year's incone statement Sales Cost of goods sold Interest expense Income tax expense Net Income Basie tarnings per share Cash dividends per share Beginning of-year balance sheet data Accounts receivable, net Merchandise Inventory Total assets Conon stock, 55 par value Retained earnings Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 780,00 592,100 3.100 14,992 164,08 4.85 5.81 5914,200 648,500 14,000 25,236 226,462 5.01 570,340 81,800 129,000 156,500 $ 478,540 5.97,300 103,000 226,000 107,48 $ 533,700 $ 0,600 61,600 430,000 170,000 121,232 5 55,200 111,400 192,500 226.000 59,478 Problem 17-5A (Algo) Part 1 Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio. (accounts receivable turnover (inventory turnover (el 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 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 18 short term For both companies compute the current ratio. (a) Company Current Ratio Denominator: Numerator: Current Ratio Current ratio Dat Barco to 1 Kyan Problem 17-5A (Algo) Part 1 Required: 1o. For both companies compute the () current ratio, (b) acid-test ratio, (accounts receivable tumover (inventory turnover te 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 Complete this question by entering your answers in the tabs below. 1A Days Salin 1A Days Sal Uncol 13 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the acid-test ratio. Acid Test Ratio (h) Company Numerator: Denominator Acid Test Ratio Acid-test ratio TOT Barco Kyan to 1 Problem 17-5A (Algo) Part 1 Required: 10. For both companies compute the () current ratio, (b) acid-test ratio. ( accounts receivable turnover (inventory turnover (edays' 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 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 IA Days Sal Iny Uncol 1B short term For both companies compute the inventory turnover. Inventory Turnover Denominator: Company Numerator: Inventory Tomover Inventory turnover Binas Barco Kyan times Problem 17-5A (Algo) Part 1 Required: 10. For both companies compute the () current ratio. () acid-test ratio. ( accounts receivable turnover (o inventory turnover (e) days sales in Inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 16. 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 Patio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol IB short term For both companies compute the days' sales in inventory, Days Sales In Inventory Company Numerator Denominator Days Barco Kyan Days' Sales in Inventory Days' sales in inventory days days Problem 17-5A (Algo) Part 1 Required: 10. For both companies compute the (a current ratio, (b) acid-test ratio. ( accounts receivable turnover (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. LA Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol 18 short term For both companies compute the days' sales uncollected. (0) Company Days Sales Uncollected Denominator: Numerator: Days 3 Barco Kyan Days Sales Uncollected Days'sales uncollected days days Problem 17-5A (Algo) Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts receivable turnover. (a) 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 Iny Uncol 1B short term Identify the company you consider to be the better short-term credit risk Beter short-term credit risk Problem 17-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover (a return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their le price earnings ratios and ( dividend yields. 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2 Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Veld Req 28 For both companies compute the total asset turnover (b) Company Total Asset Turnover Denominator: Numerator Total Asset Turnover Total asset turnover O times times Barco Kyan Problem 17-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (el price-earnings ratios and (y dividend yields. 2b. Identity which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio ZA Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on equity. (d) Company Return On Equity Denominator Numerator v Return On Equity Return On equity Barco Kyan 0 % 0 % Problem 17-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (el price-earnings ratios and (y dividend yields 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. ZA Prof Mar Ratio 2A Tot Asset 2A Reton Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Reg 28 Assurning that share and each company's stock can be purchased at $95 per share, compute their price-earnings ratios, te) Company Numerator: Price. Earnings Ratio Denominator 1 1 Barco Kyan Price Earnings Ratio Price-earnings ratio o times 0 times 2A Ret On Equity 2A Div Yield Problem 17-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and return on equity Assuming that each company's stock can be purchased at $95 per share, compute their (el price-earnings ratios and (dividend yields 20. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Reg 28 Assuming that each company's stock can be purchased at 595 per share, compute their dividend yields Company Dividend Yield Denominator Numero: Barco Kyan Dividend Yield Dividend yield 05 09 2A Price Eam Ratio Req 28 > Problem 17-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (dreturn on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and (y dividend yields. 21. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. ZA Prof Mar Ratio 2A Tot Asset 2A Reton Tot Assets Turn 2A Ret On Equity 2A Price Earn Ratio 2A Dly Meld Reg 28 Identity which company's stock you would recommend as the better investment. The boter investment

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