Check my work Required information [The following information applies to the questions displayed below) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $880,200 Cost of goods sold 585,100 632,500 Interest expense 7.900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividends per whare 3.81 3.93 Liabilities and Equity Current liabilities Long-term notos payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123, 300 142, 150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206.000 98,300 93,600 quired: For both companies compute the (a) current ratio, (b) acid-test ratio. (accounts receivable turnover. () Inventory turnover, (e) days! des in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. Prev 1 2 of 2 Next > Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover (oh 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 Days Salin Iny 1A Days Sal Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the current ratio. Current Ratio Choose Denominator: 1 Company Choose Numerator: Current Ratio Current ratio 1 to 1 Barco Kyan to 1 A Current 1A Acid Test Ratio 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the acid-test ratio. Acid-Tost. Ratio Company Choose Numerator: Choose Denominator 1 Acid-Tent Ratio Acid-test ratio to 1 Barco ### 1 + 2 to 1 Kyan 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Day Sal in 1A Days Sal Ink Uncol 1B short term For both companies compute the days' sales in inventory. Company Choose Numerator: Days Sales In Inventory 1 Choose Denominator: Days 1 = Days' Sales in Inventory Days' sales in inventory days days Barco 11 Kyan = 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec 1A Invent Turnover 1A Days Sal in Inv Turn 1A Days Sal Uncol 18 short term For both companies compute the days' sales uncollected. (9 Company Choose Numerator: X Days Sales Uncollected 1 Choose Denominator: Days 1 / HI Days' Sales Uncollected Days' sales uncollected days days Barco X Kyan 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol LLLLLEREER 1B short ter Identify the company you consider to be the better short-term credit risk. Better short-term credit risk