! 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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $ 800,000 $ 914,200 Prepaid expenses Cash $ 22,000 $ 34,000 Accounts receivable, net 40,400 53,400 Merchandise inventory Plant assets, net Current liabilities Total assets Liabilities and Equity Long-term notes payable Common stock, $5 par value Retained earnings $ 452,740 $ 67,340 83,800 $ 101,300 101,000 226,000 Total assets 110,800 Total liabilities and equity $ 452,740 $ 539,100 200,000 101,600 84,640 5,700 300,000 138,500 7,800 305,400 $ 539,100 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 Common stock, $5 par value Retained earnings 586,100 8,400 640,500 18,000 15,377 190,123 25,238 230,462 4.75 3.70 5.10 3.92 $ 30,800 $ 57,200 61,600 111,400 398,000 412,500 200,000 226,000 59,477 57,522 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days' sales uncollected. Note: 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. Ratio 1A Current 1A Acid Test 1A Acct Rec Ratio 1A Invent 1A Days Sal in Turn Turnover Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Current Ratio Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio 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 Barco yan Numerator: Current Ratio Denominator: Current Ratio Current ratio = 0 to 1 0 to 1 < 1A Current Ratio 1A Acid Test Ratio >