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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

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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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales 5770,000 $588,200 Cash 5 19,500 $ 34,000 Cost of goods sold 585,100 632500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,000 24300 Prepaid expenses 5,000 6,950 Net income 162,200 210,400 Plant assets, net 290,000 304,400 Basic earnings per share 4.51 5.11 Total assets 5445,440 5542,450 Cash dividends per share 3.93 Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total Halities and equity Beginning-of-year balance sheet data $ 61,340 $ 93,380 Accounts receivable, net 89.820 101,200 Merchandise inventory 180,000 206,000 Total assets 123,300 142, 150 Common stock, SS par value 5445, 440 5542,450 Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180, 900 206,000 95,300 93600 Required: 1o. For both companies compute the (o current ratio, (b) acid-test ratio, () accounts receivable turnover (c) Inventory turnover (ey days sales in inventory, and to days' sales uncollected (Do not round intermediate calculation) 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 Ratio 1A Acid Test Ratio 1A Act Rec Turn LA Invent Turnover 1A Days Salin A Days Sal 18 short term Inv Uncol For both companies compute the accounts (including notes) receivable turnover, (c) Accounts Receivable. Tumover Company Choose Numerator Choose Denominator Accounts Receivable Turnover Accounts receivable Turnover Barco 1 O times Kyan 1 O times (1A Acid Test Ratio 1A Invent Turnover >

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