Summary information from the financial statements of two companies competing in the same industry follows.

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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 32,000 Accounts receivable, net 36,400 51,400 Merchandise inventory 84,740 142,500 Prepaid expenses 5,300 7,100 Plant assets, net 320,000 303,400 Total assets $465,940 $536,400 Barco Kyan Company Company Data from the current year's income staterent Sales $770,000 $918,200 Cost of goods sold 594,100 652,500 Interest expense 8,700 14,000 Income tax expense 14,800 25,349 Net income 152,400 226,351 Basic earnings per share 4.01 4.80 Cash dividends per share 3.70 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 60,340 $ 99, 300 Accounts receivable, net 85,800 103,000 Merchandise inventory 190,000 236,000 Total assets 129,800 98,100 Common stock, $5 par value $465,940 $536,400 Retained earnings $ 27,800 $ 56,200 53,600 115,400 458,000 392,500 190,000 236,000 118,000 60, 549 Required Information Required: a. For both companies compute the (a) current ratio. (b) acid-test ratio. (c) accounts receivable turnover (0) 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 1 A Days Sal in Iny 1A Days Sal 1B short term Uncol For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: Choose Denominator: Current assets 1 Current liabilities Barco 145,940 ! | $ Kyan $ 233,000 $ = Current Ratio = Current ratio 60,340 = 2.4 to 1 99,300= 2.3 to 1 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 Sal in Iny 1A Days Sal 13 short term Uncol For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Cash Barco | $ Kyan Choose Numerator: Short-term investments Choose Denominator: / Current liabilities + Current receivables + 19,500 + = Acid-Test Ratio = Acid-test ratio 0 to 1 0 to 1 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 1A Days Sal al 18 short term in Iny Uncol For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover / Choose Denominator: = Accounts Receivable Turnover = Accounts receivable turnover 0 times 0 times Barco Kyan 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 Sal 1A Days Sal in Iny Uncol 1B short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: = Inventory Turnover Inventory turnover 0 times Barco Kyan 0 times 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 Sal 1A Days Sal 1B short term in Iny Uncol 1 B short term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: x Days = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days Barco Kyan 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 1A Days Sal 18 short term in Iny Uncol For both companies compute the days' sales uncollected. Days' Sales Uncollected 1 Choose Denominator: CompanyChoose Numerator: x Days = Days' Sales Uncollected = Days' sales uncollected 0 days 0 days farco ayan