Required information Problem 17-5A (Algo) 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 Company Kyan Data from the current year-end Company Barco Company Kyan Company balance sheets Data from the current year's income statement Assets Sales $ 790,000 $899,200 Cash $ 22,500 Accounts receivable, net 38,400 84,840 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 5,300 330,000 $ 481,040 $ 62,340 79,800 134,500 7,880 312,400 $544,100 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 30,000 59,400 588,100 7,500 15,185 650,500 18,000 24,824 179,215 205,876 4.07 4.55 3.75 4.02 $ 102,300 109,000 220,000 226,000 118,900 106,800 Common stock, $5 par value $ 481,040 $544,100 $ 29,800 $51,200 61,600 109,400 448,000 372,500 220,000 226,000 Retained earnings 104,685 82,628 Problem 17-5A (Algo) Part 1 Required: 1a. 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 (5) 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 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal 18 short term Inv Uncol For both companies compute the current ratio. (a) Company Barco Kyan Numerator: 1 Current Ratio Denominator: Current Ratio Current ratio 0 to 1 0 to 1 <1a current ratio 1a acid test>