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 $ 21,000 $ 31,000 Accounts receivable, net 36,400 53,400 Merchandise inventory 84,740 132,500 Prepaid expenses 5,300 7,150 Plant assets, net 350,000 304,400 Total assets $497,440 $528,450 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $893,200 Cost of goods sold 588,100 632,500 Interest expense 7,900 11,000 Income tax expense 14,608 24,659 Net income 149,392 225,041 Basic earnings per share 3.93 4.77 Cash dividends per share 3.76 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $101,300 84,800 109,000 190,000 236,000 162,300 82,150 $497,440 $528,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 $ 52,200 53,600 109,400 378,000 372,500 190,000 236,000 155,788 45,437 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inver sales in inventory, and 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. Current Ratio Choose Denominator: Company Choose Numerator: = Current Ratio = Current ratio Barco Kyan