! 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 Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 21,000 39,400 84,940 5,600 280,000 $ 430,940 Kyan Company Data from the current year's income statement Sales $ 35,000 Cost of goods sold 59,400 Interest expense 134,500 Income tax expense 7,000 Net income 304,400 Basic earnings per share $ 540,300 Cash dividends per share Beginning-of-year balance sheet data $ 94,300 Accounts receivable, net 103,000 Merchandise inventory 246,000 Total assets 97,000 Common stock, $5 par value $ 540,300 Retained earnings $ 790,000 593,100 8,000 15,185 173,715 5.11 3.76 $ 908,200 646,500 13,000 25,073 223,627 4.55 4.01 $ 60,340 78,800 170,000 121,800 $ 430,940 $ 27,800 59,600 378,000 170,000 75,925 $ 58,200 105,400 422,500 246,000 70,665 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, () accounts receivable turnover, (a) Inventory turnover, (e) days' sales In Inventory, and (7 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 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. Current Ratio (a) Company Numerator: 1 Denominator: = 1 = Current Ratio Current ratio 0 to 1 0 to 1 1 Barco Kyan 1