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 Data from the current year-end balance sheets Assets Barco Company Kyan Company Barco Company Kyan Company Data from the current year's income statement Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,500 35,400 84,340 $31,000 55,400 134,500 Sales Cost of goods sold Interest expense Income tax expense Plant assets, net 5,200 360,000 7,000 Net income Total assets Liabilities and Equity Current liabilities. Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 507,440 310,400 $538,300 Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data. $ 62,340 $103,300 Accounts receivable, net 78,800 210,000 156,300 109,000 Merchandise inventory 236,000 Total assets 90,000 Common stock, $5 par value $ 507,440 $538,300 Retained earnings $760,000 $923,200 595,100 644,500 7,600 19,000 14,608 25,487 142,692 234,213 3.40 4.96 3.77 4.01 $27,800 $ 56,200 53,600 115,400 448,000 402,500 210,000 236,000 171,948 45,059 Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, (d) 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. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal 18 short term Invi 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 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 Invi 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 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Numerator: Barco Kyan Accounts Receivable amover Denominator Accounts Receivable Jumover Accounts receivable turnover 0 times 0 times IA Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the inventory turnover. I (d) Company Numerator Barco Kyan Inventory Luftbet Dnominato Aerofory Jumpver Inventory turnover 0 times 0 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 Turnover 1A Days Sal in 1A Days Sal Uncol 18 short term For both companies compute the days' sales in inventory. (0) Company Barco Kyan Numerator: Days Salos in Inventory Denominator: Days Days Sales in Inventory Days' sales in inventory 0 days 0 days 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 Uncol 1B 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. 0 days 0 days Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Reci Turn IA Invent Turnover 1A Days Sal in 1A Days Sal short term Inv Identify the company you consider to be the better short-term credit risk. Uncol Botter shad-turm credit risk