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 Data from the current year's balance sheets income statement Assets Sales $770,000 Cash $ 18,000 $ 38,000 59,400 134,500 6,950 Cost of goods sold Interest expense 585,100 8,400 $881,200 648,500 14,000 Income tax expense Net income 311,400 Basic earnings per share Cash dividends per share 14,800 24,327 161,700 194,373 3.85 4.30 3.77 4.02 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 38,400 84,940 5,400 300,000 $ 446,740 $ 550,250 Beginning-of-year balance sheet data $ 68,340 $ 102,300 Accounts receivable, net 85,800 210,000 $ 28,800 $ 51,200 105,000 Merchandise inventory 59,600 115,400 82,600 226,000 116,950 Total assets 388,000 392,500 $ 446,740 $ 550,250 Common stock, s par value: Retained earnings 210,000 226,000 79,248 104,281 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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.