! 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 Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 30,000 Accounts receivable, net 33,400 52,400 Merchandise inventory 84,540 136,500 Prepaid expenses 5,900 7,600 Plant assets, net 320,000 307,400 Total assets $463, 340 $533,900 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $903,200 Cost of goods sold 589,100 642,500 Interest expense 9,300 10,000 Income tax expense 14,608 24, 935 Net income 146,992 225, 765 Basic earnings per share 4.59 4.99 Cash dividends per share 3.77 4.02 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 68, 340 $ 92,300 81,800 105,000 160,000 226,000 153,200 110,600 $463, 340 $533,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 51,200 55,600 113,400 408,000 422,500 160,000 226,000 126,848 66,539 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 (1) 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 Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current assets Current Ratio 1 Choose Denominator: / Current liabilities = Current Ratio Current ratio Barco 1 - oto 1 Kyan 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: = Acid-Test Ratio Acid-test ratio 0 to 1 +++ + Barco Kyan 1 1 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover | Choose Denominator: Inventory Turnover / Inventory turnover Barco 1 0 times Kyan / 0 times Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory 1 Choose Denominator: X Company Choose Numerator: Days / X = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days 1 Barco Kyan 1 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. (f) CompanyChoose Numerator: Days' Sales Uncollected 1 Choose Denominator: x Days = Days' Sales Uncollected 1 = Days' sales uncollected / X 0 days 1 0 days Barco 11 Kyan x 11 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1 A Days Sal in 1A Days Sal Inv Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk