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Required information Problem 13-5A 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 yan Barco Kyan Company Company Company Company Data from the current or end balance sheets Data from the current year's income statement Assets Sales $770,000 $80,200 Cash $ 19,500 $ 34,000 cost of goods sold 585,100 6325 Accounts receivable. net 45,500 54,600 Interest expense 7,900 13,000 Merchandise Inventory 36,440 192,500 Incone tax expense 14.80 24/100 Prepaid expenses 5.000 6.950 Net Income 162,200 210.40 Plant assets, net 290,000 104,400 Basic warnings per share 4.51 Total assets 3445,440 5542,450 Cash dividends per share 1.81 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 61,093,100 Accounts receivable, net $ 29,800 $ 54/200 Long-term stos payable 30,000 101,900 Merchandise Inventory 55. 107,400 Connon stock, 35 par value 180,00 206,000 Total assets 398.000 387.500 Retained earnings 12.142,150 Connon stock, 35 par value 180,00 206,000 Total abilities and equity Retained earnings 98,10 93.600 Problem 13.5A Part 1 (e) days Required: 1a. For both companies compute the current ratio. (b) acid-test ratio. (accounts receivable turnover (c) inventory turn 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 Current Ratio 1A Ad Test Ratio 1A Acet Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal 108 short term Inwy Uncol For both companies compute the current ratio, (A) Company Choose Numerator: Not sales Barco $ 162.2001 Kyan 5 210,400 Current Ratio Choose Denominator Net als s 770,000 S 3.10.200 Current Ratio Current ratio 0.2 to 1 0.2 to 1 1A Acid Test Ratio >

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