Required information Problem 17-5A 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 Company Company Data from the current year-end balance sheets Assets Cash $ 20,000 $ 37,000 Accounts receivable, net 40,400 -55,400 Merchandise inventory 85,00 130,500 Prepaid expenses 6,200 7,600 Plant assets, net 360.000 311,400 Total assets $511,640 $541,900 Barco kyan Company Company Data from the current year's income statement Sales 5810,000 5885,200 Cost of goods sold 588,100 646,500 Interest expense 7,700 16,000 Income tax expense 15,565 24.438 Net Income 198,631 198,262 Basic earnings per share 4.73 Cash dividends per share 1.30 4.01 5.00 Liabilities and Equity Current liabilities Long-ters notes payable Common stock, 35 par value Retained earnings Total liabilities and equity $ 65,340 $92,300 81,800 115,000 210,000 196,000 154,500 138,600 $511,640 $541,900 Beginning of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 30,800 $ 53200 55,600 107,400 378,000 412.500 210,000 196,000 115,469 97530 Problem 17-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio. ( accounts receivable turnover. (d) inventory turnover (c) 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 Acet Rec Turn 1A Invent Turnover 1A Days Salin A Days Sal Iny Uncol 18 short term For both companies compute the current ratio, (a) Company Choose Numerator Current Ratio 1 Choose Denominator: - Current Ratio Current tato tot Barco Kyan to 1 18 1A Acid Test Ratio > Problem 17-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover (c) inventory turnover (ey days sales in inventory, and () days' sales uncollected. (Do not round intermediate calculations.) 11. 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 IA Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 10 short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator - Acid-Test Ratio Acid-test rabo to 1 to 1 Barco Kyan 1 . . 4 Problem 17-5A Part 1 Required: 10. For both companies compute the (a) current ratio, (b) acid test ratio, (a accounts receivable turnover (c) 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 13 short term For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover (c) Company Choose Numerator: 1 Choose Denominator: Accounts Receivable Turnover = Accounts receivable turnover times Barco Kyan times ( 1A Acid Test Ratio 1A Invent Turnover > Problem 17-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts recevable turnover (c) inventory turnover, (ej 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol 13 short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover Choose Denominator: - Inventory Turnover Inventory turnover times Barco Kyan timos Problem 17-5A Part 1 Required: 1o. For both companies compute the (a) current ratio. (b) acid-test ratio. ( accounts receivable turnover. (inventory tumover (@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 Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol 13 short term X For both companies compute the days' sales in inventory Days Sales In Inventory Company Choose Numerator: Choose Denominator 2 Barco Kyan Days X = Days Sales in Inventory Days' sales in inventory days days X = X Problem 17-5A Part 1 Required: 1o. For both companies compute the current ratio. (b) acid-test ratio, (accounts receivable turnover (inventory turnover (@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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol 10 short term For both companies compute the days' sales uncollected 10 Days Sales Uncollected 1 Choose Denominator: * Days CompanyChoose Numerator: Barco Kyan - Days' Sales Uncollected Days' salos uncollected days days Problem 17-5A Part 1 Required: 10. For both companies compute the (a) current ratio. (b) acid-test ratio (accounts receivable turnover. (d) 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 1 A Days Salin 1A Days Sal Iny Uncol 18 short term Identify the company you consider to be the better short-term credit risk. Beltor short term credit risk