roblem $13-5A(Algo)$ Comparative ratio analysis $LOP3$

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$[The$ 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 Kyan Company

Data from the current year$-$end balance sheets Data from the current year$s$ income statement

Assets Sales $ $780,000$ $ $905,200$

Cash $ $20,000$ $ $33,000$ Cost $of$ goods sold $589,100632,500$

Accounts receivable, net $38,40056,400$ Interest expense $8,30012,000$

Merchandise inventory $84,540140,500$ Income tax expense $14,99224,990$

Prepaid expenses $5,8007,100$ Net income $167,608235,710$

Plant assets, net $340,000310,400$ Basic earnings per share $3\mathrm{.}995\mathrm{.}46$

Total assets $ $488,740$ $ $547,400$ Cash dividends per share $3\mathrm{.}794\mathrm{.}02$

Liabilities and Equity Beginning$-of-$year balance sheet data

Current liabilities $ $67,340$ $ $101,300$ Accounts receivable, net $ $32,800$ $ $55,200$

Long$-$term notes payable $83,800115,000$ Merchandise inventory $55,600111,400$

Common stock, $$5$ par value $210,000216,000$ Total assets $388,000422,500$

Retained earnings $127,600115,100$ Common stock, $$5$ par value $210,000216,000$

Total liabilities and equity $ $488,740$ $ $547,400$ Retained earnings