4 Part 1 of 2 18 points Skipped eBook 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. 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 $ 22,800 $ 37,000 Cost of goods sold 590,100 642,900 Accounts receivable, net 37,400 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 290,000 306,400 Basic earnings per share 4.87 5.13 Total assets $439,940 $548, 200 Cash dividends per share 3.75 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 95,360 Accounts receivable, net Long-term notes payable 80,890 189,000 Merchandise inventory 59,600 199,400 Common stock, $5 par value 180,000 236,000 Total assets 448,068 372,400 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 51,410 1 $ 31,868 $ 50,400 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover, () Inventory turnover, (e) days' sales in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 16. 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 days' sales in inventory. (e) Days' Sales in Inventory Choose Choose Denominator: x Days - Days' Sales in Inventory Days' sales in inventory Barco 0 days Kyan 0 days Company Numerator: X X