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 Ryan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $884,200 cash $ 22,000 $31,000 Cost of goods sold 593,100 652,500 Accounts receivable, net 36,400 58,400 Interest expense 8,600 19,000 Merchandise inventory 84,540 138,500 Income tax expense 14,800 24.410 Prepaid expenses 5,100 7,250 Net Income 153,500 188,290 Plant assets, not 340,000 310,400 Danie carningo per share 4.26 3.83 Total assets $488,040 $545,550 Cash dividends per share 3.80 3.95 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 62,340 $100,300 Accounts receivable, net $ 27,800 $ 53,200 Long-term notes payable 85,800 107,000 Merchandise inventory 55,600 109,400 Cormon stock, 55 par value 180,000 246,000 Total asseto 388,000 362,500 Retained earnings 159,900 92,250 Common stock, $5 par value 180,000 246,000 Total liabilities and equity $488,040 $545,550 Retained earnings 143,200 98,300 Required: 1a. For both companies compute the (al current ratio, () acid-test ratio, (accounts receivable turnover (c) 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. IA Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover, ich inventory turnover, (e) days' sales in inventory, and (6 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 18 short term IA Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Inv Uncol For both companies compute the current ratio. Current Ratio Choose Denominator Company Choose Numerator: 4 Barco Current Ratio Current ratio oto 1 oto 1 Kyan 1A Acid Test Ratio > 1A Can 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 1A Days Sal Iny Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio Barco Kyan +++ Acid-test ratio oto 1 0 to 1 Help Retained earnings Total liabilities and equity 159,900 92,250 $488,040 $545,550 Common stock, 65 par value Retained earnings 180,000 143,200 246,000 98.300 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (6 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 Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Choose Denominator: - Accounts Receivable Turnover Company Choose Numerator: = Accounts receivable turnover Barco 1 o times Kyan 0 times Total liabilities and equity $488,040 $545,550 Retained earnings 143,200 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts receivable turnover. (d) inventory turnover(e) de 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 Days Sal in 1A Days Sal Uncol 1B short term Inv 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: 1 Inventory Turnover Inventory turnover Barco 0 times 1 Kyan 1 Otimes Chapter 13 Retained earnings Total liabilities and equity 159,900 92,250 $488,040 $545, 550 Common stock, $5 par value Retained earnings 180,000 143,200 246,000 98,300 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover. (dinventory 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. 18 short term 1A Current 1A Acid Test 1A Acct Rec IA Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Unca For both companies compute the days' sales uncollected. 10 CompanyChoose Numerator: Days Sales Uncollected Choose Denominator: x Days xxxx - Days' Sales Uncollected Days' sales uncollected 0 days O days Barco Kyan Total liabilities and equity $488,040 $545, 550 Retained earnings 143,200 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover. (e) 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. 18 short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 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