Required information

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 $1$

Required:

$1$a$.$ For both companies compute the $($a$)$ current ratio, $(b)$ acid$-$test ratio, $(c)$ accounts receivable turnover, $(d)$ inventory turnover, $(e)$ days'

sales in inventory, and $(f)$ days' sales uncollected.

Note: Do not round intermediate calculations.

$1$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:

$1$ A Current

Ratio

$1$A Acid Test

Ratio

$1$A Acct Rec

Turn

$1$A Invent

Turnover

$1$A Days Sal in

Inv

$1$A Days Sal

Uncol

For both companies compute the current ratio.

$($a$)$

Company

Numerator:

l

$1$

Barco

Kyan

Current Ratio

Denominator:

$=$

Current Ratio

Current ratio

$=$

$=$

$=$

$0$ to $1$