a)Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 20212015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 1,521 $ 1,332 $ 1,212 $ 1,111 $ 1,036 $ 964 $ 790 Cost of goods sold 1,094 890 766 670 623 582 464 Gross profit 427 442 446 441 413 382 326 Operating expenses 324 254 233 172 149 147 122 Net income $ 103 $ 188 $ 213 $ 269 $ 264 $ 235 $ 204 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 20212015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets Cash $ 100 $ 132 $ 138 $ 140 $ 146 $ 144 $ 149 Accounts receivable, net 720 756 684 525 462 438 309 Merchandise inventory 2,604 1,896 1,656 1,396 1,254 1,065 772 Other current assets 67 60 37 66 56 57 30 Long-term investments 0 0 0 205 205 205 205 Plant assets, net 3,186 3,174 2,777 1,567 1,619 1,439 1,235 Total assets $ 6,677 $ 6,018 $ 5,292 $ 3,899 $ 3,742 $ 3,348 $ 2,700 Liabilities and Equity Current liabilities 1,680 $ 1,413 $ 927 $ 771 $ 669 $ 633 $ 408 Long-term liabilities 1,794 1,563 1,521 706 721 781 586 Common stock 1,215 1,215 1,215 1,080 1,080 945 945 Other paid-in capital 304 304 304 270 270 236 236 Retained earnings 1,684 1,523 1,325 1,072 1,002 753 525 Total liabilities and equity $ 6,677 $ 6,018 $ 5,292 $ 3,899 $ 3,742 $ 3,348 $ 2,700 Required: Complete the below table to calculate the trend percents for all components of both statements using 2015 as the base year. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales grow over the past four years? (c) Did inventory increase over this period?

2)Summary information from the financial statements of two companies competing in the same industry follows.

Barco CompanyKyan Company Barco CompanyKyan CompanyData from the current year-end balance sheets Data from the current years income statement Assets Sales$ 790,000$ 904,200Cash$ 21,000$ 36,000Cost of goods sold592,100650,500Accounts receivable, net33,40054,400Interest expense8,80011,000Merchandise inventory84,440136,500Income tax expense15,18524,962Prepaid expenses5,5007,550Net income173,915217,738Plant assets, net290,000304,400Basic earnings per share4.834.82Total assets$ 434,340$ 538,850Cash dividends per share3.723.96Liabilities and Equity Beginning-of-year balance sheet data Current liabilities$ 69,340$ 101,300Accounts receivable, net$ 28,800$ 50,200Long-term notes payable83,800117,000Merchandise inventory63,600117,400Common stock, $5 par value180,000226,000Total assets418,000402,500Retained earnings101,20094,550Common stock, $5 par value180,000226,000Total liabilities and equity$ 434,340$ 538,850Retained earnings61,20555,804

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.

Note: Do not round intermediate calculations.

1b. Identify the company you consider to be the better short-term credit risk.