A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals: Cash Accounts receivable Inventory Equipment Total assets $ 41,000 Current liabilities 56,000 Long-term liabilities 61,600 Common stock 146,000 Retained earnings $304,000 Total liabilities and equity $ 76,000 31,000 101,900 96,000 $304,000 Multiple Choice 0.54 128 Refer to the following selected financial information from McCormik, LLC. Compute the company's acid-test ratio for Year 2 Help Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 Year 1 $ 38,700 $ 33,450 102,000 66,000 91,500 85,500 127,000 131,000 13,300 19,900 394,000 344,090 107,400 113,800 717,800 682,000 396,000 381,000 Multiple Choice 2.16 3.34 Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Data from the current year-end balance sheets Company Company Data from the current year's income statement Assets Sales $760,000 $917,200 Cash $ 22,888 $ 37,000 Cost of goods sold Accounts receivable, net 583,100 636,500 33,400 56,400 Interest expense 9, 100 13,000 Current notes receivable (trade) 9,900 7,089 Income tax expense 14,608 25,321 Merchandise inventory 84,640 136,589 Net income 153, 192 242,379 Prepaid expenses 5,500 6,95 Basic earnings per share 3.65 5.88 Plant assets, net 350,000 395,400 Cash dividends per share 3.72 3.98 Total assets $505,440 $549, 250 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 27,800 $ 51,200 Current liabilities $ 64,340 $ 95,300 Current notes receivable (trade) 0 Long-term notes payable 79,800 113,000 Merchandise inventory 55,600 113,400 Common stock, $5 par value 210,000 206,000 Total assets 398,000 412,500 Retained earnings 151,300 134,950 Common stock, $5 par value 210,000 206,000 Total liabilities and equity $505, 440 $549, 250 Retained earnings 154,348 56,547 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, id accounts (including notes) receivable turnover (c) inventory Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover. Ich 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 better short-term credit risk. Complete this question by entering your answers in the tabs below. Turn 1A Days Sal in 1A Days Sal Inv Uncol Reg 1B 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turnover For both companies compute the current ratio. (a) Current Ratio Company Choose Numerator: Choose Denominator: Current Ratio Current ratio Barco Kyan 0 to 1 O to 1 IN DER 1A Acid Test Ratio > 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol Reg 1B For both companies compute the acid-test ratio. (b) Company Acid Test Ratio Choose Numerator: Choose Denominator Acid Tent Ratio Acid-test ratio oto 1 + Barco Kyan + Oto 1 entering your answers in the tabs below. 1A Invent Turnover 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol For both companies compute the inventory turnover. Req 1B (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: 1 1 I! Barco yan Inventory Turnover Inventory turnover 0 times 11 11 0 times 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the days' sales in inventory. Req 1B (e) Company Choose Numerator: Days Sales in Inventory Choose Denominator: Days Barco Days tales in Inventory Days' sales in inventory 0 days 0 days Kyan Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol Req 1B For both companies compute the days' sales uncollected. (0) CompanyChoose Numerator: Days. Sales Uncollected Choose Denominator: X Days Days' Sales Uncollected = Days' sales uncollected 0 days 0 days 11 Barco Kyan XX Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 1B Identify the company you consider to be the better short-term credit risk. etter short-term credit risk