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 Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $780,000 $921,200 Cash $19,000 $36,000 Accounts receivable, net 40,400 51,400 Merchandise inventory 84,440 132,500 Prepaid expenses Plant assets, net 6,000 350,000 7,050 311,400 Current liabilities Total assets: Liabilities and Equity Long-term notes payable Connon stock, $5 par value Retained earnings Total liabilities and equity $ 499,840 $ 538,350 $ 65,340 $ 90,300 85,800 180,000 168,700 109,000 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory 589,100 652,500 8,500 12,000 14,992 25,432 167,408 231,268 4.65 3,77 4.90 3.96 $ 29,800 $ 54,200 57,600 115,400 236,000 Total assets 428,000 372,500 103,050 Common stock, $5 par value 180,000 236,000 $ 499,840 $538,350 Retained earnings 137,012 58,694