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 $780,000 $889,202 Cash $ 21, see $ 37,eee cost of goods sold 595,100 652,500 Accounts receivable, net 33,400 56,400 Interest expense 8, 20e 10.000 Merchandise inventory 84,940 138, see Income tax expense 14,992 24,548 Prepaid expenses 5,188 7,350 Net income 161,788 282,152 Plant assets, net 330,000 310, 4ee Basic earnings per share Total assets $474,940 $549,650 Cash dividends per share 3.79 3.96 4.64 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,348 $ 90, 300 82,800 101,000 200, een 226,000 125,800 132,350 $474,940 $549,650 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 $ 53,200 63,600 113,400 418,000 402, See 288,888 226, eae 115,692 189, 190 Required: 1a. For both companies compute the (m) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) Inventory turnover, (e) days' 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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Inv 1A Days Sal Uncol IB short term For both companies compute the current ratio. Current Ratio Choose Denominator: Company Choose Numerator: = Current Ratio = Current ratio 0 to 1 O to 1 Barco Kyan Required: ta. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. (a) Inventory turnover. (e) day 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 Salin 1A Days Sal Inv Uncol 18 short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Barco 0 to 1 Kyan + O to 1 Help Save & E Required: ta. For both companies compute the (e) current ratio. (b) acid-test ratio. (c) accounts receivable turnover, (c) inventory turnove 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. Turn 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio 1B short term Ratio Turnover Iny Uncol For both companies compute the accounts (including notes) receivable turnover, (c) Accounts Receivable Turnover Company Choose Numerator: | Choose Denominator: = Accounts Receivable Turnover Accounts receivable turnover Barco 1 O times 0 times Kyan 1A Acid Test Ratio 1A Invent Turnover Help Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover. () inventory tu 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 Days Salin Inv 1A Days Sal Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn WTurnover For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover Choose Denominator: = Inventory Turnover = Inventory turnover / Barco 1 O times It Kyan 0 times 7 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) Inventory 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 Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal thv Uncol 18 short term For both companies compute the days' sales in inventory. (e) Days' Sales in Inventory Company Choose Numerator: Choose Denominator: * Days X = Days' Sales in Inventory = Days' sales in inventory o days 0 days Barco Kyan 1A Days Sal Uncol Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. (c) accounts receivable turnover, () inven 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 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. (9 Days' Sales Uncollected CompanyChoose Numerator: Choose Denominator: x Days = Days' Sales Uncollected = Days' sales uncollected X Barco X 0 days 0 days Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivablet 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 Days Sal in 1A Invent Turnover 1A Days Sal Uncol 1B short term Inv Identify the company you consider to be the better short-term credit risk. Better short-term credit risk