$9$

Requlred Informatlon

Problem $17-5$A $($Algo$)$ Comparative ratio analysis LO P$3$

$[$The following information applies to the questions displayed below$]$

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

Problem $17-5$A $($Algo$)$ Part $1$

Requlred:

$10.$ For both companies compute the $($a$)$ current ratio. $(b)$ acid$-$test ratio, $($c$)$ accounts receivable tumover, $(d)$ inventory turnover, $()$ days" sales in inventory, and $(f)$ days" sales uncollected.

Note: Do not round Intermedlate calculatlons.

$1$b$.$ Identify the company you consider to be the better short$-$term credit risk.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[\backslash$table$[[1$A Current$],[$Ratio$]],\backslash$table$[[1$A Acid Test$],[$Ratio$]],\backslash$table$[[1$A Acct Rec$],[$Turn$]],\backslash$table$[[1$A Invent$],[$Turnover$]],\backslash$table$[[1$A Days Sal in$],[$Inv$]],\backslash$table$[[1$A Days Sal$],[$Uncol$]],1$B short term$]]$

For both companies compute the current ratio.