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 balance sheets Kyan Company Data from the current year. Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 19,500 $ 36,000 39,400 59.400 84,846 142,500 5,000 2.500 300,000 309,400 $4.49,740 $554,600 Barco Kyan Company Company Data from the current year's income statement Sales $780, eee $895,200 Cost of goods sold 586,100 636,500 Interest expense 7,680 16, Income tax expense 14.992 24,714 Net income 171,385 217,956 Basic earnings per share 3.89 4.82 Cash dividends per share 3.724 .00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total Habilities and equity $ 69,348 82,800 229,000 77,600 $4.49,768 $95.300 107,000 226,000 126,300 $554,600 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 63,600 388,000 22e, eee 69,972 $ 53,200 111,400 392,500 226,000 99,114 Required: 1o. For both companies compute the (a) current ratio. (b) acid-test ratio, accounts receivable turnover, (d) inventory turnover. (e) days' 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 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Inv A Days Salt Uncol short term Ratio For both companies compute the current ratio. For both companies compute the current ratio. (a) Current Ratio Choose Denominator Company Choose Numerator: = Current Ratio = Current ratio 0 to 1 0 to 1 Barco Kyan 1A Current Ratio 1A Acid Test Ratio >