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 $800,000 $ 893,200 Merchandise inventory Prepaid expenses Plant assets, net Total assets Cash $ 20,500 Accounts receivable, net 34,400 34,340 5,500 360,000 310,400 $504,740 $546,150 Liabilities and Equity Current liabilities $63,340 $100,000 Long-term notes payable 85,000 111,000 Common stock, $5 par valu 170,000 236,000 Total assets Retained earnings Total liabilities and equity 185,600 $504,740 98,050 $546,150 Common stock, $5 par value Retained earnings $ 37,000 58,400 132,500 7,850 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 588,100 8,100 642,500 16,000 15,377 188,423) 24,659 210,041 5.54 3.741 4.45 4.02 5 26,800 $ 56,200 55,600 113,400 418,000 412,500 170,000 236,000 124,337 78,553 Required: 10. For both companies compute the (o) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (d) inventory turnover, (e) days sales in inventory, and (4 days sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.