h Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash $ 21,000 37,400 84,540 6,100 360,000 $ 509,040 $ 30,000 57,400 138,500 7,500 305,400 $ 538,800 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 Corrmon stock, $5 par value Retained earnings $ 780,000 583,100 7,800 14,992 174,108 4.84 3.72 $ 913,200 634,500 11,000 25,211 242,489 5.89 3.93 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 $ 63,340 84,800 180,000 180,900 $ 509,040 $ 104,300 115,000 206,000 113,500 $ 538,800 $ 32,800 55,600 388,000 180,000 140,712 $ 51,200 107,400 392,500 206,000 32,927 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (o inventory turnover, (e) days' sales in inventory, and i 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. LADISLIKLAIN. -- --.--.:............ ! Required information Complete this question by entering your answers in the tabs below. 14 Current Ratio 14 Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Current Ratio Denominator: Numerator: = 7 / = Current Ratio Current ratio to 1 to 1 = Barco Kyan II 1A Current Ratio 1A Acid Test Ratio >