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. Darco Company Kyan Company Barco Company Kya Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant annet.net Total asseto Liabilities and Equity Current liabilities Long-ter notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 18,000 5 30,000 37,400 59,400 34,440 134,500 5.400 7.450 310.000 311,400 5.455,240 $ 542,750 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expenso Net Income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable.net Merchandise inventory Total assets Common stock, 55 per value Betained earnings $ 800,000 $901,200 590, 100 632,500 3.700 15.000 15,377 24,879 105,823 228.121 5.84 4.01 $ 63,340 5 100,300 80.800 101,000 190,000 196.000 121,100 145,450 $.455.240 542,750 $31.000 59.600 458,000 190,000 70,537 $ 52,200 109.400 392,500 196.000 73, 121 Required: Required: 1a. For both companies compute the (a current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (inventory turnover (c) 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 1A Acct Rec 1A Invent A Days Salin IA Days Sal Ratio Ratio Turn Turnover Iny Uncol 18 short term For both companies compute the current ratio, a) Current Ratio Company Numerator Denominator Current Ratio Current ratio Barco 2 101 kyan to 1 TA Guman kan 1A Acid Toot Ratio > Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1 Acct Rec Ratio Turn IA Invent Turnover 1A Days Salin IA Days Sal inv Uncol 18 short term For both companies compute the acid-test ratio. (b) Company Acid-Test Ratio Numerator Denominator: Acid-Test Ratio Acid-test ratio to 1 Barco Kyan to 1 1A Current Ratio 1A Acct Rec Tum > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec 1A Invent A Days Sal in 1A Days Sal Ratio Turn Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover, Ratio 18 short term c) Company Accounts Receivable Turnover Denominator: Numerator: Accounts Receivable Turnover Accounts receivable turnover times Barco Kyan times Complete this question by entering your answers in the tabs below. 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1 Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the inventory turnover. (d) Inventory Turnover Company Numerator Denominator: Inventory Turnover Inventory turnover Barco times Kyan times 1 1 1A Acct Rec Turn 1A Days Sal in Inv> Complete this question by entering your answers in the tabs below. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1 Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales in inventory Days' Sales In Inventory Company Numerator Denominator: Days Barco Kyan Days' Sales in Inventory Days' sales in inventory days days Complete this question by entering your answers in the tabs below. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Ddys Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. Company Numerator: Days' Sales Uncollected Denominator Days Barco Days' Sales Uncollected Days sales uncollected days days Kyan Complete this question by entering your answers in the tabs below. 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk Uncol shone Barco company kyan company