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 Barcol Company Kyan Company Data from the current year-end Data from the current year's balance sheets income statement Assets Sales $770,000 $914,200 Cash $ 21,500 $ 37,000 Cost of goods sold 591,100 642,500 Accounts receivable, net 50,400 Merchandise inventory 136,500 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 63,340 $ 99,300 84,800 160,000 7,000 data 117,000 236,000 Total assets 132,600 91,000 Total liabilities and equity $440,740 $543,300 Common stock, $5 par value. Retained earnings 38,400 84,740 6,100 290,000 312,400 $440,740 $ 543,300 Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory Interest expense 9,100 14,000 Income tax expense 14,800. 25,238 Net income: 155,000 232,462 Basic earnings per share 4.84 4.93 3.81 3.98 $ 25,800 $55,200 59,600 107,400 408,000 412,500 160,000 236,000 99,520 46,394 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.