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Financial Statement Analysis Project Saved 4 Part 1 of 2 Required information {The following information applies to the questions displayed below. Summary Information from the financial statements of two companies competing in the same industry follows 1B points Skipped . eBook Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $790,000 $924, 200 Cash $ 22,00 $ 37,000 Cost of goods sold 590,100 642,00 Accounts 37,400 receivable, net 59,400 Interest expense 9,300 14,000 Merchandise inventory 84,440 138,500 Income tax expense 15,185 25,914 Prepaid expenses 6,100 6,900 Net income 175,415 242,186 Plant assets, net 290,000 386,480 Basic earnings per share 4.87 5.13 Total assets $439,940 $548,200 Cash dividends per share 3.75 3.93 1 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 95,300 Accounts receivable, net $ 31,800 $ 50,400 Long-term notes payable 80,800 109,000 Merchandise inventory 59,600 109,400 Common stock, $5 par value 180,000 236,000 Total assets 448,000 372,500 Retained earnings 111,800 107,900 Common stock, $5 par value 180,000 236,000 Total liabilities $439,940 $548,200 Retained earnings and equity 71,385 51,11e Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover, (dInventory 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. Complete this question by entering your answers in the tabs below. 1A 1A Acid 1A Acct 1A Invent 1A Days 1A Days 18 short Current Test Ratio Rec Turn Turnover Sal in Inv Sal Uncol term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: - Acid-Test Ratio Acid-test ratio Barco 0 to 1 Kyan Oto 1 =

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