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 Company Kyan Data from the current year-end balance sheets Data from the current year's income statement Sales $770,000 $880,200. Assets Cash 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 $ 19,500 $ 34,00e 46,500 64,600 84,460 132,500 5,000 6,950 290,000 304,400 $445,448 $542,450 Cost of goods sold Interest expense Income tax expense Net incone Basic earnings per share 585,100 632 see 13,000. 14,800 2430e 162,200 210,400 4.51 1.11 3.81 3.93 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 $ 54|200 Merchandise inventory 55,600 107,400 206,000 Total assets 398,000 382]see 180,000 206,000 $ 61,300 $93, 3ee 80,00 101,000 180,000 123,300 142,15e Common stock, $5 par value $445,400 $542,450 Retained earnings 98,300 93,688 Required: 16. 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. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal 18 short term Inv Uncol For both companies compute the acid-test ratio. (b) Company Barco $ 19.500 + Kyan + Acid-Test Ratio Choose Numerator: Choose Denominator: Current liabilities S ' 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv 1B short term Uncol For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: Choose Denominator: = Inventory Turnover Cost of goods sold Average inventory = Inventory turnover Barco Kyan 1 = O times 0 times 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Invi Uncol 1B short term (e) For both companies compute the days' sales in inventory. Days' Sales in Inventory. Company Choose Numerator: Choose Denominator: x Days Days' Sales in Inventory Merchandise inventory Cost of goods sold 365 = Days' sales in inventory Barco 1 x = 0 days Kyan x = 0 days Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. Days' Sales Uncollected Company Choose Numerator: Choose Denominator: x Days = Days' Sales Uncollected Current receivables, net 1 Net sales x 365 = Barco Kyan 1 x = x = 1A Days Sal in Inv Days' sales uncollected 1B short term > 0 days 0 days