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 Data from the current year's balance sheets Barco Kyan Company Company Assets Cash $ 20,500 $ 33,000 Accounts receivable, net 38,400 57,400 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 84,840 5,800 360,000 132,500 7,800 312,400 $ 509,540 $ 543,100 income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory data $ 71,340 81,800 220,000 136,400 $92,300 101,000 236,000 113,800 $ 509,540 $ 543,100 Total assets $ 800,000 $ 917,200 591,100 8,100 652,500 12,000 15,377 25,321 185,423 227,379 4.21 4.82 3.73 3.94 $ 29,800 $ 55,200 57,600 107,400 438,000 362,500 Common stock, $5 par value Retained earnings 220,000 236,000 115,097 72,389 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. Note: 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. 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. Note: 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 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Numerator: Barco Kyan Current Ratio Denominator: Current Ratio Current ratio 0 to 1 0 to 1 <1A Current Ratio 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. Note: 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 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal 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 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. Note: 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 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) 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 > 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. Note: 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 1A Days Sal in 1A Days Sal 18 short term Turnover For both companies compute the Inventory turnover. Inv Uncol (d) Company Numerator: Barco Kyan Inventory Turnover Denominator: Inventory Turnover Inventory turnover 0 times 0 times <1A Acct Rec Turn 1A Days Sal in Inv > 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. Note: 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 18 short term Turnover Inv Uncol For both companies compute the days' sales in inventory. (e) Company Barco Kyan Numerator: 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 > 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 (6 days' sales uncollected. Note: 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 Reci Ratio Ratio Turn 1A Invent 1A Days Sal in 13 Days Sal 18 short term Turnover For both companies compute the days' sales uncollected. Inv Uncol (0) Company Barco Kyan Numerator: Days' Sales Uncollected Denominator: Days Days' Sales Uncollected Days' sales uncollected 0 days 0 days <1A Days Sal in Inv 18 short term > 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. Note: 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 Identify the company you consider to be the better short-term credit risk. Better short-term credit risk 1A Days Sal Uncol 18 short ferm