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. Kyan Company Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 18,580 $ 33, Bee Accounts receivable, net 38,480 57,400 Current notes receivable (trade) 9,999 7,282 Merchandise inventory 84,748 136,580 Prepaid expenses 5,989 7,380 Plant assets, net 288,888 385,488 Total assets $437,440 $546,880 Barco Company Data from the current year's income statement Sales $790,000 Cost of goods sold 586,180 Interest expense 8,580 Income tax expense 15,185 Net income 180,215 Basic earnings per share 5.e1 Cash dividends per share 3.72 $911,280 638 500 15,880 25 155 232,545 .54 3.94 $ 32,800 $ 53200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61, 340 $184,380 81,890 105,299 189,888 286, 114,380 131,500 $437,448 $546,800 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65,600 428,882 180,00 68,895 113400 372,500 206eee 61,283 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, () accounts (including notes) receivable turnover, (d) Inventory turnover, (e) days' sales In Inventory, and ( days' sales uncollected. (Do not round Intermedlate calculations.) 1b. Identify the company you consider to be better short-term credit risk. 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 Inv 1A Days Sal Uncol Reg 1B For both companies compute the current ratio. a) Current Ratio Choose Denominator: Company Choose Numerator: = Current Ratio = Current ratio Barco Kyan 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 Inv 1A Days Sal Uncol Reg 1B For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: = Acid-Test Ratio = Acid-test ratio Barco Kyan 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 Inv 1A Days Sal Uncol Reg 1B For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: 1 Choose Denominator: = Accounts Receivable Turnover Accounts receivable turnover Barco times Kyan times 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 Inv 1A Days Sal Uncol Reg 1B For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover / Choose Denominator: = Inventory Turnover Inventory turnover Barco Kyan 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 14 Days Sal in Inv 1A Days Sal Uncol Reg 1B For both companies compute the days' sales in inventory. Days Sales in Inventory Choose Denominator: Company Choose Numerator: Days = Days Sales in Inventory = Days' sales in inventory Barco days Kyan days 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 Inv 1A Days Sal Uncol Reg 1B For both companies compute the days' sales uncollected. (f) Company Choose Numerator: Days' Sales Uncollected Choose Denominator: x Days = Days' Sales Uncollected Days' sales uncollected Barco Kyan days 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 Inv 1A Days Sal Uncol Reg 1B Identify the company you consider to be the better short-term credit risk. Better short-term credit risk 1A Days Sal Uncol Reg 13