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 Company Kyan Data from the current year-end Data from the current year's balance sheets Assets Cash $ 18,500 $ 37,000 Accounts receivable, net 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 $ 475,448 $ 541,550 Retained earnings 36,400 57,400 income statement Sales Cost of goods sold Interest expense $810,000 $897,200 587,100 634,500 9,000 12,000 84,540 6,000 330,000 130,500 Income tax expense 15,569 24,769 7,250 Net income 198,331 225,931 309,400 $ 475,440 $541,550 Basic earnings per share Cash dividends per share 4.96 5.48 3.73 3.93 Beginning-of-year balance sheet data $ 62,340 79,800 $95,300 109,000 Accounts receivable, net Merchandise inventory 200,000 206,000 Total assets 133,300 131,250 Common stock, $5 par value $ 29,800 $ 54,2001 59,600 115,400 398,000 392,500 200,000 206,000 84,169 67,235 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 (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 1A Acid Test Ratio: Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Uncol 18 short term For both companies compute the current ratio. (0) Company Barco Kyan Numerator: Current assets Current Ratio Denominator: Current Ratio Current liabilities Current ratio to 1 T to 1 1A Current Rate 1A Acid Test Ratio > 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 (4) 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. IA Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the acid-test ratio. (b) Company Barco Kyan Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio: Acid-test ratio 0 to 1 <1a current ratio 1a acct rec turn> 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal 1B short term Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover. Company Numerator: Barco Kyan Accounts Receivable Turnover Denominator: Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times <1a acid test ratio 1a invent turnover> Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turni 1A Invent 1A Days Sal in 1A Days Sal Turnover Uncol 18 short term For both companies compute the inventory turnover. (d) Company Numerator: Barco Kyan Inventory Turnover Denominator: Inventory Turnover Inventory turnover 0 times o times < 1A Acct Rec Turn 1A Days Sal in Inv > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the days' sales in inventory. (0) Company Barco Kyan Numerator: 1 Days' Sales in Inventory Denominator: Days Days' Sales in Inventory Days' sales in inventory 0 days 0 days < 1A Invent Turnover 1A Days Sal Uncol > Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncoll 18 short term For both companies compute the days' sales uncollected. ( Company Barco Kyan Numerator: Days Sales Uncollected Denominator: Days Days' Sales Uncollected Days' sales uncollected O days 0 days < 1A Days Salin Inv 18 short term > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv 1B short term Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk <1a days sal uncol 10 short term>