Question: After analyzing the data for both companies. Explain in several paragraphs which company you would chose, Barco or Kyan, that (1) has the better short-term position, and which company (2) would be the better investment. (Include references to the specific data (ratios) you calculated for comparison that would support your response. Do not use dollar amounts for support as dollar amounts are not indicators of financial position.)

Barco Company Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement 770,000 s 920.200 648,500 Assets Sales Cash $21,000 33,000 Cost of goods sold 593,100 9,200 14,800 152,900 4.78 3.74 Accounts receivable, net 38,400 59,400 13,000 Current notes receivable (trade) Interest expense Income tax expense 9,200 7,600 25,404 233,296 Merchandise inventory Prepaid expenses Plant assets, net 84,540 130,500 Net income 6,000 340,000 6,950 4.74 Basic earnings per share Cash dividends per share 310,400 3.97 499140 $547850 Total assets Liabilities and Equity Current liabilities Long-term notes payable 78,800 01,000 Merchandise inventory Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 $ 53,200 Current notes receivable (trade) $ 71,340 $104,300 (trac 0 0 61,600 113,400 Common stock, $5 par 160,000 246,000 Total assets 448,000 412,500 value Common stock, $5 par value 189,000 246,000 Retained earnings 96,550 160,000 499,140 Total liabilities and equity $ $547,850 Retained earnings 155,780 58,578