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 Ryan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $810,000 $887,200 Cash $ 21,000 $ 35,000 cost of goods sold 595,100 648,500 Accounts receivable, net 35, 400 60,400 Interest expense 8,200 14,000 Current notes receivable (trade) 9,300 8,600 Income tax expense 15,569 24,493 Merchandise inventory 84,340 130,500 Net income 191,131 200, 207 Prepaid expenses 5, 2006 ,900 Basic earnings per share 4.78 5.11 Plant assets, net 350,000 304,400 Cash dividends per share 3.73 3.98 Total assets $505, 240 $545, BOO Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 32,800 $ 58,200 Current liabilities $ 60,340 $101,300 Current notes receivable (trade) Long-term notes payable 82,800 103,000 Merchandise inventory 59,600 107,400 Common stock, 55 par value 200,000 196,000 Total assets 438,000 392,500 Retained earnings 162,100 145,500 common stock, $5 par value 200,000 196,000 Total liabilities and equity $505, 240 $545,800 Retained earnings 120,169 101,309 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, () inventory es in inventory, and (7 days' sales uncollected. (Do not round intermediate calculations. 1b. Identify the company you consider to be 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 Reg 1B For both companies compute the current ratio. Current Ratio Choose Denominator: Company Choose Numerator: Current Ratio Current ratio Barco 0 to 1 Kyan 0 to 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, ( 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 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 Req 1B For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Barco O to 1 Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) 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 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 1 Days Sal in 1A Days Sal Uncol Req 1B Inv For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator / Choose Denominator: - Accounts Receivable Turnover = Accounts receivable turnover O times Barco 0 times Kyan Required: Ta. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts (including notes) receivable turnover (chinventory turnover, (e) days' sales in inventory, and 7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 Uncol Req 1B Iny For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover Choose Denominator: = Inventory Turnover = Inventory turnover 0 times Barco Kyan 0 times Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) 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 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 Uncol Inv Reg 1B For both companies compute the days' sales in inventory. Days' Sales In Inventory Choose Denominator: x Company Choose Numerator: Days - Days' Sales in Inventory Days' sales in inventory 0 days 0 days Barco Kyan Required: 1a. For both companies compute the () current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover. (inventory turnover, (e) days' sales in Inventory, and days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 1 A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Reg 1B For both companies compute the days' sales uncollected. (1) Days' Sales Uncollected 1 Choose Denominator: x Company Choose Numerator: Days - Days' Sales Uncollected Days' sales uncollected 0 days 0 days Barco Kyan