Required information Problem 13-5A (Static) 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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $880,200 Cont of goods sold 585,100 632,500 Interest expense 7.900 23,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividende per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142, 150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total ansets Common stock, 55 par value Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180.000 206,000 98,300 Problem 13-5A (Static) Part 1 Required: 1a. For both companies compute the (6) current ratio. (b) acid test ratio, () accounts receivable turnover (c) inventory turnover (@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 Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover 1B short term Inv Uncol For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: Choose Denominator: Current Ratio Current assets 1 Current liabilities Current ratio 1 $ 61,340 Barco to 1 $ 93,300 to 1 Kyan 1A Current Ratio 1A Acid Test Ratio > Problem 13-5A (Static) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (a) 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. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Cash Choose Numerator: Short-term investments + Current receivables Choose Denominator: 1 Current liabilities 1 1 = Acid-Test Ratio Acid-test ratio O to 1 O to 1 . Barco Kyan Problem 13-5A (Static) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover (c) inventory turnover (e) da 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 1A Acid Test 1A Act Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol 18 short term For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Company Choose Numerator: 1 Choose Denominator: Accounts Receivable Turnover Net sales Average accounts receivable, net Accounts receivable turnover Barco 1 0 times Kyan 1 O times Problem 13-5A (Static) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (c) inventory turnover. (e) day sales in inventory, and (1 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 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnovlar Iny Uncol 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: 1 Choose Denominator: Inventory Turnover Cost of goods sold Average inventory Inventory turnover Barco / 0 times Kyan 1 0 times = = Problem 13-5A (Static) Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) 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. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn IB short term Turnover Inv Uncol For both companies compute the days' sales in Inventory. (0) Days Sales In Inventory Company Choose Numerator: 1 Choose Denominator Days Days' Sales In Inventory Merchandise inventory Cost of goods sold X 365 Days' sales in Inventory O days Barco 1 x Kyan O days - Problem 13-5A (Static) Part 1 Required: 1a. For both companies compute the (@) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (o) inventory turnover, (e) days sales in inventory, and (1 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 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv 18 short term Urcol For both companies compute the days' sales uncollected. (0 Days' Sales Uncollected Company Choose Numerator: Choose Denominator: X Days Days' Sales Uncollected Current receivables, net 1 Net sales x 365 Days' sales uncollected Barco X o days X Kyan o days =