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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 Company Company Data from the current year-end balance sheets Assets Cash $ 20,000 $ 38,000 Accounts receivable, net 33,400 52,400 Merchandise inventory 84,440 130,500 Prepaid expenses 5,800 7,500 Plant assets, net 350,000 306,400 Total assets $493,640 $539,800 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $913,200 Cost of goods sold 588,100 634,500 Interest expense 7,600 14.000 Income tax expense 14,800 25,211 Net income 159.500 239,489 Basic earnings per share 3.62 6.11 Cash dividends per share 3.80 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 62,340 $ 94,300 78,800 101,000 220,000 196,000 132,500 148,500 $493,640 $539,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 $ 53,200 53,600 109,400 438,000 392.500 220.000 196,000 140,200 65,811 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (accounts receivable turnover (o inventory turnover, (e) days sales in inventory, and (1 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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio Choose Denominator: Current Ratio Current ratio to 1 1 Barco Kyan to 1 1A Acid Test Ratio >

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