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 Barco Company Kyan Company Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $880,200 Cash $19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities. 84,440 132,500 5,000 6,950 Cost of goods sold Interest expense Net income 585,100 632,500 7,900 13,000 Income tax expense 14,800 24,300 162,200 210,400 290,000 304,400 Basic earnings per share 4.51 5.11 $445,440 5 542,450 Cash dividends per share 3.81 3.93 Beginning-of-year balance sheet data Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $93,300 80,800 101,000 180,000 206,000 123,300 142,150 $445,440 $542,450 Accounts receivable, net Merchandise inventory $29,800 $ 54,200 55,600 107,400 Total assets: 398,000 382,500 Common stock, $5 par value Retained earnings 180,000 206,000 98,300 93,600 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 ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.