Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.j Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement sales $770,000 $886,200 583,100 638,500 8,100 13,000 14,800 24,465 164,000 210,235 10 3.93 $ 18,500 $ 31,000 Cost of goods sold 38,40051,400 Interest expense 9,000 8,400 Income tax expense 84,640 130,500 Net income 5,100 7,650 Basic earnings per share 5.12 3.73 340,000 308,400 Cash dividends per share $495, 640 $537,350 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 27,800 s 52,200 $ 63,340 93,300 Current notes receivable (trade) 57,600 107,400 438, 000 422,500 160,000 206,000 140,860 72,731 86,800 117,000 Merchandise inventory 160,000 206,000 Total assets 185,500 121,050 Common stock, $5 par value $495, 640 $537,350 Retained earnings Problem 13-5 Part 1 Required 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) 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 better short-term credit risk. Complete this question by entering your answers in the tabs below A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected Days CompanyChoose Numerator: Choose Denominator: x Days Days' Sales Uncollected Current receivables, ne Net sales 365 Days' sales uncollected X Barco 0 days 0 days Kyan 1A Days Sal in Inv Req 1B Problem 13-5A Comparative ratio analysis LO A1, 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 Kyan Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $886,200 583,100 638,500 8,100 13,000 14,800 24,465 164,000 210,235 10 3.93 $18,500 $ 31,000 Cost of goods sold 38,400 51,400 Interest expense 9,000 8,400 Income tax expense 84,640 130,500 Net income 7,650 Basic earnings per share 5,100 5.12 3.73 340,000 308,400 Cash dividends per share $495,640 $537,350 Beginning-of-year balance sheet data Accounts receivable, net s 27,800 52,200 Liabilities and Equity Current liabilitie:s Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 63,340 93,300 Current notes receivable (trade) 86,800 117,000 Merchandise inventory 160,000 206,000 Total assets 185,500 121,050 Common stock, $5 par value 57,600 107,400 438,000 422,500 160,000 206,000 140,860 72,731 $495,640 $537,350 Retained earnings Problem 13-5 Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) 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 better short-term credit risk. Complete this question by entering your answers in the tabs below 1A Current Ratio 1A Acid Test1A Acct Rec 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol Req 1B Ratio Turn For both companies compute the acid-test ratio -Acid-Test Ratio Company Choose Numerator: Choose Denominator: Cash +Short-term investments Current receivables Current iabilities Acid-test ratio Barco 18,500 + 63,340 to 1 Kyan 31,000+ 93.300 1A Acct Rec Turn> 1A Current Ratio