Please help with the following question, thank you! Required informationProblem 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.Data from the current year-endbalance sheetsAssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityCurrent liabilitiesLong-term notes payableCommon stock, $5 par valueRetained earningsTotal liabilities and equityProblem 13-5A (Static) Part 1BarcoKyan1A CurrentRatio1A Acid Test 1A Acct RecRatioTurnFor both companies compute the current ratio.(a)CompanyBarcoCompanyNumerator:$ 19,50046,50084,4405,000290,000$ 445,440Current assetsKyanCompany$ 61,34080,800180,000123,300$ 445,440 $ 542,450$ 34,00064,600132,5006,950304,400 Basic earnings per share$ 542,450$ 93,300101,000206,000142, 150Complete this question by entering your answers in the tabs below.Current RatioDenominator:1A Invent 1A Days Sal inTurnoverInv11 Current liabilities11=Data from the current year'sincome statementSalesCost of goods soldRequired:1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days'sales in inventory, and (f) days' sales uncollected. (Do not round intermediate calculations.)1b. Identify the company you consider to be the better short-term credit risk.==Interest expenseIncome tax expenseNet income||||Cash dividends per shareBeginning-of-year balance sheetdataAccounts receivable, netMerchandise inventoryTotal assetsCommon stock, $5 par valueRetained earnings1A Days SalUncol1B short termBarcoCompanyCurrent RatioCurrent ratio0 to 10 to 1$ 770,000585,1007,90014,800162,2004.513.81$ 29,80055,600398,000180,00098,300KyanCompany$ 880, 200632,50013,00024,300210,4005.113.93$ 54,200107,400382,500206,00093,600

Ratio analysis is the tool for financial statement analysis that helps us compare the financial…

Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Problem 13-5A (Static) Part 1 Barco Kyan 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the current ratio. (a) Company $ 19,500 46,500 84,440 5,000 290,000 $ 445,440 Numerator: Current assets Kyan Company $ 34,000 64,600 132,500 6,950 304,400 $ 542,450 Complete this question by entering your answers in the tabs below. Current Ratio Denominator: $ 61,340 $ 93,300 80,800 180,000 123,300 101,000 206,000 142,150 $ 445,440 $ 542,450 Retained earnings 1A Invent 1A Days Sal in Turnover Inv 1 1 Current liabilities 1 / = Data from the current year's income statement Sales Cost of goods sold = Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. = data Accounts receivable, net Merchandise inventory = Total assets Common stock, $5 par value 1A Days Sal Uncol 1B short term Barco Company Current Ratio Current ratio 0 to 1 0 to 1 $ 770,000 585,100 7,900 14,800 162,200 4.51 3.81 $ 29,800 55,600 398,000 180,000 98,300 Kyan Company $ 880, 200 632,500 13,000 24,300 210,400 5.11 3.93 $ 54,200 107,400 382,500 206,000 93,600

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q