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 Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net $ 19,000 $ 38,000 37,400 52,400 9.900 8,000 84,940 132,500 5,600 7.750 330,000 311,400 Barco Kyan Company Company Data from the current year's income statement 800,000 Sales $ $897,200 Cost of goods sold 592.100 638,500 Interest expense 8,100 15,000 Income tax expense 15,377 24.769 Net income 184,423 218,931 Basic earnings per share 4.39 4.64 Cash dividends per share 4.00 3.77 Total assets $ 486,840 $ 550,050 $ 52,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 0 Beginning-of-year balance sheet data Accounts receivable, net $ 27,800 Current notes receivable 0 (trade) Merchandise inventory 63,600 $69,340 $ 100,300 80,800 101,000 210,000 236,000 105,400 388,000 412.500 126,700 Total assets Common stock, $5 par value 112.750 210,000 236,000 Total liabilities and equity $ 486,840 $ 550,050 Retained earnings 100,617 82.619 Required: 1.1 For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, () inventory turnover, (e) days' sales in Inventory, and (days' sales uncollected. (Do not round intermediate calculations.) (a) Company Choose Numerator: Current Ratio Choose Denominator: 1 1 Current Ratio Current ratio Oto 1 Barco Kyan / 7 = O to 1 (b) Company Acid-Test Ratio Choose Numerator: Choose Denominator: = + Acid-Test Ratio Acid-test ratio + + Barco Kyan 0 to 1 0 to 1 (c) Accounts Receivable Turnover Company Choose Numerator: 1 Choose Denominator: 1 Accounts Receivable Turnover Accounts receivable turnover Barco O times Kyan = O times (d) Company Choose Numerator: Inventory Turnover Choose Denominator: 1 1 Inventory Turnover Inventory turnover 0 times Barco 7 Kyan - 0 times (e) Days' Sales in Inventory Company Choose Numerator: 1 Choose Denominator: X Days 1 Barco Kyan Days' Sales in Inventory Days' sales in inventory o days 0 days X X 0 Company Choose Numerator: Days: Sales Uncollected Choose Denominator: Days 1 / X Barco Kyan Days Sales Uncollected Days' sales uncollected o days 1 X 1 X O days D Company Choose Numerator: Days' Sales Uncollected Choose Denominator: X Days / / X Barco Days' Sales Uncollected Days' sales uncollected 0 days 0 days = Kyan 1 = 11 1.2 Identify the company you consider to be better in managing short-term credit risk. O Barco company Kyan company