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 $ 20,500 $ 33,000 Accounts receivable, net 39,400 59,400 Merchandise Inventory 84,840 130,500 Deepaid expenses 5,400 7,600 Plant anneto, net 300,000 304,400 Total sust $450,140 $534,900 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $879,200 Cost of goods sold 586,100 636,1500 Interest expense 8,100 15,000 Income tax expense 15,377 24.272 Net Income 290, 423 203,428 Basic earnings per share 4.76 Cash dividenda per share 3.75 3.95 5.19 Liabilities and Equity Current liabilities Long-term sotes payable Connon stock, 55 par value retained earnings Total liabilities and equity $ 67,340 998,300 79,800 113,000 200,000 196,000 103,000 127,600 $450,140 $534,900 Beginning-of-yogr balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 35 par value Retained earnings $ 29,800 $ 54,200 63,600 109,400 388,000 362,500 200.000 196,000 62,577 79.404 Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, (d) 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 Inv 1A Days Sal Uncol 1B short term For both companiles compute the current ratio. Current Ratio Choose Denominator: Company Choose Numerator: Current Ratio Current ratio 0 to 1 0 to 1 Barco Kyan A Current 1A Acid Test Ratio) Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover (c) invent 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 Turn 1A Invent Turnover 1A Days Salin Inv 1A Days Sal Uncol 18 short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company ces Choose Numerator: Chooso Donorinator: + Barco Kyan + Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (6) acid-test ratio, ( accounts receivable turnover. (d) inventory sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 16. 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 Acct RqC 1B short term Inv 1A Current 1A Acid Test 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Uncol For both companies compute the accounts (including notes) receivable turnover (c) Accounta. Receivable Turnover Company Choose Numerator: Choose Denominator Accounts Rocolvablo Turnover Accounts receivable turnover O times Barco O times Kyan (1A Acid Test Ratio 1A Invent Turnover > Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (c) inventory 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. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Tum Turnover Iny Uncol For both companies compute the inventory turnover. (0) Inventory Turnover Company Choose Numerator: Choose Denominator: - Inventory Turnover 1 - Inventory turnover Barco 1 times Kyan o times 1A Acct Rec Turn 1A Days Sal in in Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (a) Inventory turnover (e) 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. 1B short term Inv 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover 1A Days Salin in For both companies compute the days' sales In Inventory. Company Choose Numerator: Days! Sales In Inventory Choose Denominator: x X Days Days' Sales In Inventory = Days' sales in inventory 0 days Barco Kyan X 0 days 1A Invent Turnover 1A Days Sal Uncol > Problem 13-5A Part 1 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (accounts receivable turnover. () 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. 1B short term 1A Current 1 A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Tum Turnover Inv Uncol For both companies compute the days' sales uncollected 0 Company Choone Numerators Days Sales Uncollected Choose Denominator: x Days X Barco Days' Saten Uncollected Days' sales uncollected O days 0 days 1 Kyan 1 x x