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Below is summary information from the financial statements of 2 separate entities. Both entities operate in the same Industry Barco Kyan Company Company Data from

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Below is summary information from the financial statements of 2 separate entities. Both entities operate in the same Industry Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,500 $ 36,000 Accounts receivable, net 38,400 51,400 Merchandise inventory 84,540 132.500 Prepaid experties 5,800 7,600 Plant assets, bet 370.000 305,400 Total assets $519,240 $532,900 Barco Kyan Company Company Data from the current year's income statement Sales 5810.000 5895,200 Coat of goods sold 593, 100 640,500 Interest expense 8,800 13,000 Income tax expense 15,569 24,741 Net Income 192,531 217,959 Basle earnings per share 5.66 4.82 Cash dividends per share 3.76 1.95 Liabilities and Equity Current liabilities Long-tem notes payable Common stock. $5 par value Retained earnings Total liabilities and equity 5.70,340$ 93,300 81,800 111,000 170,000 226,000 197, 100 102,600 $519, 240 $532,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 27,800 $ 53,200 65,600 109,400 388,000 372,500 170,000 226,000 132,409 63.181 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (a accounts receivable turnover. () inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 18 short term 1A Days Salin IA Days Sal Iny Uncol For both companies compute the acid-test ratio. Acid-Test Ratio Choose Denominator Aldest Ratio Company Choose Numerator: 4 Acid-intrabio oto 1 101 Barco -- 1 Kyan (1A Current Ratio 1A Acer Ree Turn

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