P 13-5 A quired 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 sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Mer Prepaid expenses Plant assets, net Total assetS Data from the current year's income statement Sales $780,000 $919,200 584,100 636,500 14,000 14,99225,376 172,908 243,324 16 4.00 18,000 36,000 Cost of goods sold 38,400 59,400 Interest expense 8,000 9,600 8,000 Income tax expense chandise inventory 84,440 132,500 Net income 6,100 4.32 3.74 7,750 Basic earnings per share 350,000312,400 Cash dividends per share $506,540 $556,050 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par valu Retained earnings Total liabilities and equity 31,800 53,200 63,340 $103,300 Current notes receivable (trade) 86,800 113,000 Merchandise inventory 200,000 236,000 Total assets 156,400 103,750 Common stock, $5 par value 61,600 109,40o 388,000 412,500 200,000 236,000 133,092 49,226 506,540 $556,050 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including noteseceivable turnover, (a) inventory turnover, (e) days' sales in inventory, and ( 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 Ratio 1A Acid Test1A Acct Rec 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Ratio Turn For both companies compute the current ratio Current Ratio Company Choose Numerator:1 Choose Denominator: Current Ratio - Current ratio to 1 to 1 Barco Kyan 1A Current Ratio 1A Acid Test Ratio> Complete this question by entering your answers in the tabs below 1A Current 1A AcidTstA Acct Rec1A Invent 1A Days Sal in 1A Days Sal Req 18 Ratio Ratio Turn Turnover Inv Uncol For both companies compute the acid-test ratio. Acid-Test Ratio Acid-Test Ratio Acid-test ratio Company Choose Numerator: Choose Denominator: Barco to 1 Kyan to 1 1A Current Ratio 1A Acct Rec Turn> Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Inv Req 1B Ratio Ratio Turnover Uncol For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Company Choose Numerator: I Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco times Kyan times 1A Acid Test Ratio A Invent Turnover> Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol For both companies compute the inventory turnover. Inventory Turnover Company Choose Numerato: Choose Denominator: Inventory Turnover Inventory turnover Barco times Kyan times 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 1B Turn For both companies compute the days' sales uncollected. Days' Sales Uncollected CompanyChoose Numerator: Choose Denominator: x Days Days' Sales Uncollected Days' sales uncollected Barco days Kyan days 1A Days Sal in Inv Req 1B Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 1 Turn Identify the company you consider to be the better short-term credit risk Better short-term credit risk 1A Days Sal Uncol Req 1B>