Required information (The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same in the current year' Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21,500 $ 35,000 Accounts teivable, net 36,400 54,400 Merchand inventory 84,640 130,500 Prepaidenses 5,400 6,950 Plant assets, net 300,000 307,400 Total assets $447,940 $534,250 Data from thercur Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $ 94, 300 79, 800 113,000 200,000 196,000 103,800 130,95 $447,940 $ 534,253 Beginning-of-year balance she Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained carnings S Prey of 8 Next mies competing in the same industry follows. Barco Kyan Company Company Data from the current year's income statement Sales $790,000 $878, 200 Cost of goods sold 587,100 632.500 Interest expense 8,000 11,000 Income tax expense 15,185 24,244 Net income 179,715 210,456 Basic earnings per share 4.49 9.37 Cash dividends per share 3.80 3.93 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 55.200 63,600 107,400 408,000 382,500 200,000 196,000 76,085 74 550 equued Homework Help Save & Cho Required: 1o. For both companies compute the (a) current ratio. (b) acid-test ratio, id accounts receivable turnover. (inventory tumover. (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 ers in the tabs below. 1A Current Ratio 1A Adid Test Ratio 1A Acct Rec Tum 1A Invent Turnover 1 A Days Salin 1A Days Sal Iny Uncol 18 short term Identify the company you consider to be the better short-term credit risk. Det startem credit risk Required information Complete this question by entering your answers in the tabs below. 1A Culent 1A Acct Rec 1A Acid Test Ratio 1A Invent Turnover 1A Days Sal in Iny 1A Days Sal Uncol 1B short term Ratio For both companies compute e current ratio. (a) Company Choose Numerator: Current Ratio Choose Denominator: - Current Ratio Current ratio to 1 Barco Kyan to 1 1A Acid Test Ratio > Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent! 1A Days Salin Turnover Inv 1A Days Sal Uncol 1 short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventor Turnover Choose Denominator: = Inventory Turnover = Inventory turnover Barco times Kyan times DLL JUVELY Lover a Day sales in inventory, and (0) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identity 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 Iny Uncol 1B short term For both companies compute the days' sales in inventory e) Company Choose Numerator: Days' Sales in Inventory Choose Denominator: X Days X Days' Sales in Inventory Days' sales in inventory days days Barco - X Kyan Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover, () inventory turnover. (e) de 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. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Iny Uncal For both companies compute the days' sales uncollected. 10 Company Choose Numerator: Days Sales Uncollected Choose Denominator: * Days X - Days Sales Uncollected = Days' sales uncollected = days Barco X Kyan X days 1o. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts receivable turnover (inventory turnover, le 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 Act Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 18 short form Identify the company you consider to be the better short-term credit risk. Better short-term credit risk