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. income statement Sales Cost of goods sold Barco Company Kyan Company Barco Kyan Company Company Data from the current year-end Data from the current year's balance sheets Assets $770,000 $881,200. Cash $ 18,000 $ 38,000 585,100 648,500 8,400 14,000 134,500 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 59,400 38,400 84,948 5,400 6,950. 300,000 311,408 $ 446,740 $ 550,250 $ 68,340 $ 102,300 85,800 105,000 210,000 Interest expense Income tax expense Net incone Basic earnings per share- Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory $ 28,800 $ 51,200 59,600 115,400 82,600 226,000 116,950 Total assets 388,000 392,500 Common stock, $5 par value 210,000 226,000 $446,740 $ 550,250 Retained earnings 79,240 104,281 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 (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.