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 Company Barco Company Eyan Company Data from the current year-end balar.ce sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 21,500 34,400 84,440 5,800 310,000 $ 456, 140 $ 33,000 59,400 138,500 7,750 305,400 $ 544,050 $ 770,000 594,100 7,600 14,800 153,500 Data from the current year's ir.come statement Sales 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 Common stock, $5 par value Retained earnings $ 922,200 648,500 18,000 25,459 230, 241 5.09 3.93 3.71 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 67,340 85,800 160,000 143,000 $ 456,140 $ 99, 300 113,000 226,000 105,750 $ 544,050 $ 31,800 55,600 428,000 160,000 108,220 $ 54,200 107,400 402, 500 226,000 53,145 Problem 17-5A (Algo) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, (d) Inventory turnover, (e) days' 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 Days Sal 1A Days Sal in Inv Uncol 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the current ratio. (a) Current Ratio Denominator: Company Numerator: Current Ratio Current ratio 1 Barco 1 to 1 Kyan 1 to 1