Barco Company Company Kyan Barco Company Company Data from the current year-end balance sheets Assets Cash Accounts recelvable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement $770,000 $880,200 585,100 632,500 7,900 13,000 14,800 24,300 62,200210.400 5.11 19,500 34,000 37.400, Cost of goods sold 7.400 Interest expense 7.200 rcome tax expense 9,100 84,440 132,500 Net income 6,950 5.000 290,000 445.440 $542.450 Basic earnings per share 304.400Cash dividends per share 3.81 3.93 Beginning of-year balance sheet data ccounts recevable, net 29,000 $ 54.200 Liabilities and Equity Current labilties Long-term notes payable Comman stock, $5 par value Retained earnings Total labilities and equity 61,340 $ 93,300 Crent notes receivable (trade) 80,900 180000 206,000 Total assets 123,300 55,600107.400 398,000 382,500 206,000 93,600 101.000 Merchandise inventory 42,150 Comman stock, $5 par value 180000 98,300 S445,440 $542,450 Retained earnings 752 Chapter 17, Analysis of Financial Statements th companies compute the (a) current ratio, (h) acid-test ratio. (c) accounts (inchuding notes) receiv- d) inventory umover, (e) days' sales in inventory, and (0 days' sales uncollected. Identify the 1. For place. company you consider to be the hetter short-term credit risk and explain why. Round to one decimal 2. For both companies compute the (a) profit margin ratio (b) total asset turnover, (c) return on total assets, and (a) return on common saockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and ) dividend yields. Round to one decimal place, Identify which company's stock you would recommend as the better investment and explain why 013 18