2 Summary information from the financial statements of two companies competing in the same industry follows. Company Part 1 of 2 Barco Kyan Barco Kyan Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $890,200 Cash $ 18,500 $ 31,000 Cost of goods sold 596,100 652,500 Accounts receivable, net 33,400 51,400 Interest expense 8,300 11,000 Merchandise inventory 84,440 130,500 Income tax expense 14,800 24,576 Prepaid expenses 5,900 7,150 Net income 150,800 202, 124 Plant assets, net 340,000 312,400 Basic earnings per share 4.91 Total assets $482, 240 $532,450 Cash dividends per share 3.81 3.95 6.66 points 3.77 Ask Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69, 340 $ 95,300 85,800 113,000 200,000 206,000 127, 100 118,150 $482, 240 $532,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 27,800 $ 54,200 63,600 113, 400 448,000 372,500 200,000 206,000 128,700 78,766 Problem 13-5A Part 1 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 (1 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk