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 $ 21,000 $ 33,000 Accounts receivable, net 35,400 58,400 Merchandise inventory 84,440 130,500 Prepaid expenses 5,200 7,000 Plant assets, net 340,000 309,400 Total assets $486,040 $538,300 Barco Kyan Company Company Data from the current year's income statement Sales $ 790,000 $901,200 Cost of goods sold 595, 100 630, 500 Interest expense 8,500 11,000 Income tax expense 15,185 24,879 Net income 171,215 234,821 Basic earnings per share 4.08 5.44 Cash dividends per share 3.80 4.02 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 68,340 $ 92,300 83,800 107,000 210,000 216,000 123,900 123,000 $486,040 $538,300 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 51,200 55,600 109,400 428,000 362,500 210,000 216,000 112,285 61, 843 Problem 17-5A 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 (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. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Total Asset Turnover Company Choose Numerator: 1 Choose Denominator: = Total Asset Turnover / = Total asset turnover Barco 1 = 0 times Kyan 1 II O times Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. Return on Total Assets (c) Company Choose Numerator: 1 Choose Denominator: = Return on Total Assets / = Return on total assets Barco / = 0 % Kyan / 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on common stockholders' equity. (d) Company Return On Common Stockholders' Equity. 1 Choose Denominator Choose Numerator: Return On Common Stockholders 1 II Return On common stockholders' e Barco 1 = Kyan / Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $85 per share, compute their price-earnings ratios. Price-Earnings Ratio (e) Company Choose Numerator: | Choose Denominator: = Price-Earnings Ratio = Price-earnings ratio Barco = 0 times Kyan II 0 times Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $85 per share, compute their dividend yields. Dividend Yield (f) Company Choose Numerator: 1 Choose Denominator: = Dividend Yield 1 = Dividend yield Barco / = 0 % Kyan = 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. he better investment