Problem 17-5A Comparative ratio analysis P3 Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash $ 19.500 $ 34,000 Accounts receivable, net 46,500 64.600 Merchandise inventory 84.440 132.500 Prepaid expenses 5.000 6,950 Plant assets, net 290.000 304,400 Total assets $445440 $542.450 Liabilities and Equity Current liabilities $ 61.340 $ 93.300 Long-term notes payable 80,800 101,000 Common stock, 85 par value 180.000 206,000 Retained earnings 12300 142.150 Total liabilities and equity $4454140 $542.450 Data from the current year's income statement Sales $70,000 $8.80,000 585.100 Cost of goods sold 632.500 Interest expense 7.900 13.000 WAG Retained earnings 123.300 142,150 Total liabilities and equity $445.440 $542.450 Data from the current year's income statement Sales $770,000 $880,200 Cost of goods sold 585.100 632.500 Interest expense 7.900 13,000 Income tax expense 14.800 24.300 Net income 162,200 210.400 Basic earnings per share 5.11 Cash dividends per share 3-93 Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 $ 54,200 Merchandise inventory 107.400 Total assets 398,000 382,500 180,000 206,000 Common stock, $5 par value Retained earnings 98.300 4.51 3.81 55,600 93.600 Parte 2 ACC 122 Financial Analysis Project Problem 17-5A Part 1 Barco Company Ryan Company Current Ratio Acid Test Ratio Accounts Receivable Tumover Inventory Turnover Day's Sales in Inventory Day's Sales Uncollected Part 2 Profit Margin Ratio 1000000 Total Asset Turnover Return on Total Assets Return on Common Stickholder's Equity Price-Eamings Ratio Dividend Yield Ratio ACC 122 Accounting Principles 11 Financial Analysis Project Complete the financial ratio analysis of Barco Company and Kyan Company (Problem 17-5A) utilizing the Excel Answer Sheet provided. Calculate the indicated ratios for Part 1 and Part 2. Using the results of that analysis, answer the following questions. 1. Based on your analysis, which company would you consider to be the better short-term credit risk? Explain your answer. 2. Based on your analysis, which company's stock would you recommend as the better investment? Explain your