Problem 13-5A Comparative ratio analysis LO P3 [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 Data from the current year's income statement Assets Sales $780,000 $914, 200 Cash $ 20,000 $ 37,000 Cost of goods sold 595, 100 638,500 Accounts receivable, net 35,400 59,400 Interest expense 7,500 12,000 Merchandise inventory 84,540 138,500 Income tax expense 14,992 25,638 Prepaid expenses 5,500 7,500 Net income 162,408 238,462 Plant assets, net 340,000 312,480 Basic earnings per share 5.08 5.79 Total assets $485,440 $554,800 Cash dividends per share 3.81 4.01 Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 91,300 80.800 111,000 160,000 206,000 175,300 146,500 $485,440 $554,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Comon stock, $5 par value Retained earnings $ 27,800 $ 53,200 57,600 105,400 408,000 372,500 160,000 206,000 134,812 73,50 Problem 13-5A Part 1 Required: 1a. For both companies compute the () current ratio, (b) acid-test ratio, ( accounts receivable turnover (ch) 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 Hati 1A Acct Rec Turn SA Invent Turnover 10 short term IA Days Salin A Days Sal Try Uncal For both companies compute the inventory turnover