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. Cash Barco Kyan Company Company Barco Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $770,000 $903,200 $ 21,000 $ 30,000 39,400 84,440 5,900 350,000 52,400 Cost of goods sold Interest expense 586,100 632,500 132,500 7,400 Income tax expense Net income 9,000 14,800 19,000 24,935 160,100 308,400 $500,740 $530,700 Basic earnings per share Cash dividends per share 4.00 226,765 4.61 3.80 3.96 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 $ 70,340 $ 94,300 79,800 200,000 Accounts receivable, net Merchandise inventory Beginning-of-year balance sheet data $ 25,800 $ 53,200 65,600 115,400 418,000 412,500 200,000 246,000 142,500 47,467 111,000 246,000 Total assets 150,600 79,400 $500,740 $530,700 Common stock, $5 par value Retained earnings 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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.