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 $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5.000 6.950 Plant assets, net 290,000 304.400 Total aseta $445,440 $542,450 Barco Kyaan Company Company Data from the current year's income statement Sales $770,000 $80,200 Cost of goods sold 585,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 61,340 $ 93,300 Accounts receivable, net 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300 142,150 common stock, $5 par value $445,440 $542,450 Retained earnings $ 29,800 $ 54.200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover (c) 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 Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio Choose Denominator: 1 7 7 1 = Current Ratio Current ratio oto 1 0 to 1 Barco Kyan 11 / KA Current Ratio 1A Acid Test Ratio > LY Required: 1a. For both companies compute the (a) current ratio. (6) acid-test ratio. ( accounts receivable turnover (inventory turnover.( sales in inventory, and (7 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 1 Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the acid-test ratio. 1A Days Sal in 1A Days Sal Iny Uncol 10 short term (b) Company Acid-Test Ratio Choose Numerator Choose Denominator: 1 Acid-Test Ratio Acid-test ratio o to 1 Barco Kyan / O to 1 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 1A Acct Rec Ratio 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term Turn For both companies compute the accounts (including notes) receivable turnover. Accounts Recevable Turnover Choose Denominator: Company Choose Numerator: 1 Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times Barco Kyan 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 Uncol 1B short term Inv For both companies compute the inventory turnover. Inventory Turnover Choose Denominator: Il Company Choose Numerator: 1 1 11 Inventory Turnover Inventory turnover O times 0 times Barco 1 II 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 Sal in 1A Days Sal Ratio Ratio Tum Turnover Inv Uncol For both companies compute the days' sales in inventory. (0) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: x Days 1 Days' Sales In Inventory Days' sales in inventory o days 0 days 1 Barco V X Kyan 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 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the days' sales uncollected. (0) Company Choose Numerator: Days' Sales Uncollected 1 Choose Denominator: X Days 1 Days' Sales Uncollected Days' sales uncollected o days 0 days 1 Barco Kyan 7 Total liabilities and equity $445,440 $542,450 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inver sales in inventory, and (0) days' sales uncollected. (Do not round intermediate calculations.) 15. 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 1A Acct Rec Ratio Turn 1A Invent 1A Days Salin 1A Days Sal Turnover Inv Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk