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 Data from the current year-end Barco Company Kyan Company balance sheets Data from the current year's income statement Assots Salon $790,000 $886,200 Cash Accounts receivable, net $ 22,000 37,400 $ 36,000 Cost of goods sold 593,100 646,500 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 $ 68,340 $ 101,300 79,800 160,000 84,540 55,400 134,500 Interest expense 8,200 11,000 Income tax expense 15,185 24,465 5,600 7,150 Net income 173,515 204,235) 330,000 309,400 Basic earnings per share 5.42 4.52 $479,540 $542,450 Cash dividends per share 3.78 4.00 Beginning-of-year balance sheet data Accounts receivable, not $ 29,800 $ 50,200 107,000 Merchandise inventory 59,600 109,400 226,000 Total assets 398,000, 372,500 171,400 108,150 Total liabilities and equity $479,540 $ 542,450 Common stock, $5 par value Retained earnings 160,000 226,000 118,845 84,715 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 ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, sales in inventory, and (5 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 Patio 1A Acct Rec Turn 1A Invent Turnover Inv 1A Days Sal in 1A Days Sal Uncol 1B short term 1A Current Ratio 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>