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 Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $780,000 $ 893,200 Cash $ 19,000 $ 31,000 Cost of goods sold 596,100 650,500 Accounts receivable, net 34,400 57,400 Interest expense 7,500 14,000 84,440 132,500 14,992 24,659 6,000 310,000 161,408 204,041 5.04 4.72 3.70 4.00 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 7,250 311,400 $ 453,840 $ 539,550 Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data $ 63,340 $ 101,300 80,800 160,000 149,700 109,000 Accounts receivable, net Merchandise inventory $ 29,800 $ 58,200 57,600 105,400 216,000 Total assets 448,000 362,500 113,250 $ 453,840 $ 539,550 Common stock, $5 par value Retained earnings 160,000 216,000 106,692 82,009 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (f) 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 Ratio 1A Acct Rec Turn 1A Invent Turnover Inv 1A Days Sal in 1A Days Sal 1B short term Uncol For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = 0 to 1 0 to 1 1A Current Ratio 1A Acid Test Ratio >