Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $780,000 $881,200 584,100 648, 500 9,100 11,000 14,992 24,327 171,808 197,373 04 3.95 18,500 34,000 Cost of goods sold 36,400 54,400 Interest expense 85,040 134,500 Income tax expense 6,100 7,500 Net income 320,000 307,400 Basic earnings per share $466, 040 $537,800 Cash dividends per share 5.37 3.80 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 61,340 93,300 Accounts receivable, net 85,800 105, 000 Merchandise inventory 160,000 196,000 Total assets 158,900 143,500 Common stock, $5 par value $ 28,800 $ 56,200 57,600 107,400 448,000 392,500 160,000 196,000 108,692 100,967 $466,040 $537,800 Retained earnings Problem 13-5A Part 1 Required la. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (a) inventory turnover, (e) days sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) 1b. ldentify the company you consider to be better short-term credit risk