Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 20,000 $ 36,000 35,400 56,400 84,640 6,200 300,000 136,500 7,350 308,400 $446,240 $544,650 101,000 $ 63,340 $ 96,300 80,800 190,000 226,000 112,100 121,350 $446,240 $544,650 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Kyan Barco Company Company $800,000 $879,200 585,100 636,500 9,200 10,000 15,377 24,272 190,323 208,428 5.01 4.61 3.73 4.02 $ 31,800 $55,200 53,600 438,000 382,500 109,400 190,000 226,000 63,517 94,626 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. (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. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Req 1B Short Turnover Inv For both companies compute the current ratio. Uncol term (a) Current Ratio Company Choose Numerator: Choose Denominator: Current assets Current liabilities Barco $ 146,240/$ Kyan $ 236,250 $ 63,340 = 96,300 = = Current Ratio Current ratio 2.3 to 1 2.5 to 1 < 1A Current Ratio 1A Acid Test Ratio >