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 Kyan Bareo Kyan company Company Company Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $ 770,000 $920,200 Cash $ 20,500 $ 33,000 cost of goods sold 500,100 642,500 Accounts receivable, net 35,400 51,400 Interest expense 9,100 12,000 Merchandise inventory 64,340 138,500 Income tax expense 14,800 25,404 Prepaid expenses 6.000 7,650 Net income 157.000 240,296 Plant assets, net 300,000 306,400 Basie Arninge per share 3.76 5.09 Total assets 5.446.240 536,950 Cash dividends per share 3.81 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 71,340 $ 90,300 Accounts receivable, not $ 29,800 $ 54,200 Long-tem notos payable 83,800 111,000 Merchandise inventory 53,600 115,400 Common stock, 55 par value 210,000 236.000 Total assets 458,000 402,300 Retained earnings 81,100 99,650 Common stock, 55 par value 210,000 236.000 Total liabilities and equity $ 446,240 $ 536,950 Retained earnings 83,320 44,850 Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (e) current ratio, (b) acid-test ratio, ( accounts receivable turnover. (c) inventory turnover, (e) 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. Turn 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turnover Inv 18 short term Uncol For both companies compute the current ratio, Current Ratio Company Numerator Denominator: Current Ratio Current ratio Barco 1 oto 1 1 = oto 1 Kyan 1A Cut Ratio 1A Acid Test Ratio > Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the () current ratio, (b) acid-test ratio, (accounts receivable turnover. (d) 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. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio JA Acct Rec Turn 1A Invent Turnover IA Days Salin IA Days Sal 18 short term Inv Uncol For both companies compute the acid-test ratio Acid-Tent Ratio 16 Company Numerator: Denominator Acid-Test Ratio Acid-test ratio O to 1 oto 1 Barco Kyan 1 1A Current Ratio 1A Acct Rec Turn > Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (o) inventory turnover. (e) 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 IA Acid Test Ratio 1A Acct Rec Tum 1A Invent 1A Days Salin 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Numerator Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco O times 1 0 times Kyan Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (6) current ratio, (b) acid-test ratio, accounts receivable turnover. (d) inventory turnover. (e) days' sales in inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Iny Uncol For both companies compute the inventory turnover (d) Company Inventory.Turnover Denominator Numerator: Inventory Turnover Inventory turnover o times O times Barco Kyan 1 Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, () accounts receivable turnover. (inventory turnover. (e) days sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identity the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. In 1A Current 1 Acid Test 14 Acct Rec 1A Invent 14 Days Salin 11 Days Sal 18 short term Ratio Ratio Turn Turnover Uncol For both companies compute the days' sales in Inventory (0) Days Sales In Inventory Company Numerator Denominator Days - Days' Sales in Inventory Days' sales in Inventory Barco 1 0 days Kyan 1 o days Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover. () 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 1A Add Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 18 short term Ratio Ratio Turn Turnover Iny Uncol For both companies compute the days sales uncollected. co Days' Sales Uncollected Company Numerator: Denominator: * Days - Days' Sales Uncollected Days' sales uncollected Barco 1 o days Kyan O days Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (a accounts receivable turnover, ( 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. 18 short term 1A Current A Add Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Tum Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short term credit risk Uncol Barco company Kyan company