Barco Company Kyan Company Kyan Company Data from the current year-end balance sheets Assets Cash $ 19,500 Accounts receivable, net 46,500 Merchandise inventory 84.440 Prepaid expenses 5,000 Plantssets, niet 290,000 Total assets $445,440 Liabilities and Equity Current liabilities $ 61,340 Long-term notes payable 80.800 Common stock 55 per value 180.000 Retained carings 123,300 Total liabilities and equity $445,440 $ 34,000 64,600 132,500 6,950 304.400 $542450 Barco Company Data from the current your's Income statement Soles. $770,000 Cost of goods sold. 585,100 Interest expense 7.900 Income tax expense 14.800 Net Income 162.200 Basic earnings per share Cash dividends per share 3.81 Beginning of year balance sheet data Accounts receivabio.net $ 29,800 Merchandise inventory 55,600 Total assets 398,000 Common stock, 55 par value 180,000 Retained earnings 98300 $880,200 632,500 13,000 24.300 210,400 5.11 3.93 $ 93,300 101.000 206.000 142.150 3542.450 $ 54200 107.400 382,500 206.000 93.600 Required 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (e) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. Round to one deci- mal place. Identify the company you consider to be the better short-term credit risk and explain why. 2. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' 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