Return to question Required information Problem 17-5A 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 Company kyan Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 33,000 Accounts receivable. net 36.400 55,400 Merchandise inventory 85,040 134,500 Prepaid expenses 5,100 7.100 Plant assets. Det 360,000 310,400 Total assets $506,040 $540,400 Barco Kyan Company Company Data from the current year's income statement Sales $780,000 $909,200 Cost of goods sold 591, 100 650,500 Interest expense 8.700 18,000 Income tax expense 14,992 25,100 Net income 165,208 215,600 Basie varnings per share 4.13 4.77 Cash dividende per share 3.70 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Ratained earnings Total liabilities and equity $ 66,340 $ 96,300 85,800 103,000 200,000 226,000 153.900 115,100 $506,040 $540,400 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total asset Common stock, $5 par value Retained earnings $ 26,800 54,200 59.600 117,400 388,000 422,500 200.000 226,000 136.692 80,300 Prev 1 2 of 2 Next > s 5 7 8 TERIT U 11/ nows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Required: 1a. For both companies compute the (a) current ratio. (6) acid-test ratio, (accounts receivable turnover. (a) 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 Answer is not complete. 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 1A Days Sal Inv Uncal 18 short term For both companies compute the current ratio. (A) Company Choose Numerator: Current assets $ 146,040 Current Ratio Choose Denominator Current liabilities = 66,340 - Barco Current Ratio Current ratio 22 to 1 to 2.4 1 Kyan $ 230.000 $ 96.300 CD Proy 1 2 of 2 Next > 7 8 mpletion. Return to question Required information Answer is not complete. 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 1A Days Sal Inv Uncol 10 short term For both companies compute the acid-test ratio. ib) Company Acid-Test Ratio Choose Numerator: Al- Rat Choose Denominator Cost of goods sold $ Audles Barco 0$ Kyan 0 0 $ 083 0 1A Current Ratio 1A Acet Reo Turn > Pro 1 2 of 2 !!! Next > ce 5 & 7 8 E R T Y 1 O P Part 1 of 2 Answer is not complete. Complete this question by entering your answers in the tabs below. 50 points LA Current Ratio IA Acid Test Ratio 1A AccRec Tum IA Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 18 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator Net sales $ 780,000 909,200 Accounts Receivable Turnover Choose Denominator Average accounts receivable.net $ 31,600 - $ 54.400 Barco Kyan Accounts Receivable Turnover Accounts receivable tumor 247 times 167 1A Acid Test Ratio 1A Invent Turnover > ME GEW Prev 1 2 of 2 !!! Next > 6 5 3 7 U Y R W T E Q H G J K F A . S D V M N B V C Z Part 1 of 2 Answer is not complete. Complete this question by entering your answers in the tabs below. 50 points 1A Current 1A Acid Test IA Acct Rec 1A Invent 1A Days Salin A Days Sal Ratio Ratio Tum Turnover Inv Uncol 18 short term For both companies compute the days' sales in inventory. (o) Days Sales In Inventory Company Choose Numerator: Choose Denominator Days Days in wory Merchandise inventory Cost of goods sold x Days'salisan inventory Barco $ 72,320 591,100 365 447 Kyan $ 125.950 650,500 365 - 70.7 days 3850 Prey 1 2 of 2 ! Next > M GE TH ME $ 4 7 B 6 5 Z 7 2 3 o C Y E R T Q w K G H F D S A > V M N B V C N Required information Answer is not complete 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 1A Days Sal Uncol 1B short term Inv For both companies compute the days' sales uncollected. 15 Company 11 Choose Numerator: Current receivables, net $ 31,600 $ 54 400 Days' Sales Uncollected Choose Denominator: Net sales x $ 780,000 909 200 Days 3650- 365 Days' Sales Uncollected Days' sales uncollected 14.8 days 21.8 days Barco Kyan 365 w SI 1 $ 96 5 & 7 8 9 3 6 4 2 P w E R T Y