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 Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21,000 $32,000 Accounts receivable, net 33,400 50,400 Merchandise inventory 84,640 138,500 Prepaid expenses 6,100 7,600 Plant assets, net 320,000 309,400 Total assets $465,140 $537,900 Kyan Company Company Data from the current year's income statement Sales $800,000 $888,200 Cost of goods sold 586,100 636,500 Interest expense 8,900 14,000 Income tax expense 15,377 24,521 Net income 189,623 213,179 Basic earnings per share 5.93 4.72 Cash dividends per share 3.74 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $ 103,300 85,800 109,000 160,000 226,000 155,000 99,600 $465,140 $ 537,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 51,200 57,600 115,400 378,000 422,500 160,000 226,000 85,057 67221 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 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio I Choose Denominator: Current Ratio = Current ratio = to 1 Barco Kyan to 1