Saved Help Save & Exit Check my 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 $ 19,000 $ 36,000 Accounts receivable, net 33,400 55,400 Merchandise inventory 84,440 138,500 Prepaid expenses 7,550 Plant assets, net 290,000 312,400 Total assets $432, 640 $549,850 Barco Kyan Company Company Data from the current year's income statement Sales $790,000 $914,200 Cost of goods sold 586,100 644,500 Interest expense 8,600 13,000 Income tax expense 15,185 25,238 Net income 180, 115 231, 462 Basic earnings per share 5.30 5.36 Cash dividends per share 3.78 4.01 5,800 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 70,340 $ 97,300 85,800 103,000 170,000 216,000 106,500 133,550 $432,640 $549,850 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 57,00 55,600 109,400 448,000 392,500 170,000 216,000 54,905 75,320 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (o) acid-test ratio, ( accounts receivable turnover, (c) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1h Identify the comnany vironsider to be the better short term credit risk Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acld-test ratio, (a accounts recelvable turnover, (d) invent 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 Salin Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio Choose Denominator: Current Ratio Current ratio Barco 0 to 1 Kyan 0 to 1 1A Acid Test Ratio > CO 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (accounts receivable turnover, (a) 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 Days Sal in 1A Days Sal Inv Uncol 1 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Patio Tum Turnover For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: - Acid-Test Ratio Acid-test ratio O to 1 Barco O to 1 Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts receivable turnover, (d) ir sales In Inventory, and (7 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 Tura 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable tumover. Accounts Recelvable Turnover (c) Company Choose Numerator: I Choose Denominator: Accounts Recelvable Turnover Accounts receivable turnover Barco oltimes Kyan 0 times le. UF UUT Lumparles Lumpule ue la Lunen duu, (D) dulu-lestrano, accounts receiva sales in Inventory, and (days' sales uncollected. (Do not round Intermedlate 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 Inv 1A Days Sal Uncol 1B short For both companies compute the inventory turnover. Inventory Turnover (d) Company Choose Numerator: Choose Denominator: = Inventory Turnover = Inventory turnover Barco 1 1 1 II 0 times Kyan = 0 times co Nort Problem 15-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acld-test ratio, (a accounts receivable turnover, (d) inven 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 Inv Uncol 1B short term For both companies compute the days' sales in Inventory (e) Company Choose Numerator: Days' Sales In Inventory Choose Denominator: X Days X = Days! Sales in Inventory = Days' sales in inventory 0 days 0 days Barco Kyan Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, (d) invent 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 1B short term 1A Days Sal in Inv 1A Days Sal Uncol For both companies compute the days' sales uncollected. Days Sales Uncollected x Days Choose Denominator: Company Choose Numerator: 1 Days' Sales Uncollected = Days' sales uncollected 0 days 0 days 1 X Barco X Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receive 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. Ints eBook Complete this question by entering your answers in the tabs below. Print References 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol ERKEK 1B short Identify the company you consider to be the better short-term credit risk. Better short-term credit risk