net 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 Barco Kyan Company Company Company Company Data from the current year-end balance Data from the current year's income sheets statement Assets Sales $770,000 $880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,900 Accounts receivable, 37,400 57,400 Interest expense 7,900 13,000 Current notes receivable (trade) 9, 100 7,200 Income tax expense 14,800 24,50 Merchandise inventory 84,440 132,500 Net income 162,200 210,400 Prepaid expenses 5,000 6,950 Basic earnings per 4.51 share Plant assets, net Cash dividends per 290,000 304,400 3.81 3.93 share Total assets $445,440 $542,450 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net Current liabilities Current notes $ 61,340 $ 93,300 receivable (trade) Long-term notes payable 80,890 101,600 Merchandise inventory 55,600 107,400 Common stock, $5 par 180,000 286,000 Total assets 398,000 382,500 value Retained earnings Common stock, $5 par 123, 300 142, 150 value 180,000 206, Total liabilities and $445,440 $542,450 Retained earnings 98,300 93,600 equity 5.11 $ 29,888 $ 54, de 6, deo Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts (including notes) receivable turnover, () Inventory turnover (@days' sales in Inventory, and (1) days' sales uncollected. (Do not round Intermediate calculations.) 15. 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 1A Acid 1A Acct 1A Invent 1A Days 1A Days 18 short Current Test Ratio Rec Turn Turnover Sal in Inv Sal Uncol term For both companies compute the current ratio. (a) Current Ratio Choose Choose Current Ratio Denominator: = Current ratio Barco to 1 Kyan to 1 Company Numerator: = 1A Current Ratio 1A Acid Test Ratio >