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 $ 33,000 Accounts receivable, net 34,400 53,400 Merchandise inventory 84,540 134,500 Prepaid expenses 5,800 7,500 Plant assets, net 360,000 312,400 Total assets $504,240 $540, 800 Barco Kyan Company Company Data from the current year's income statement Sales $ 780,000 $912, 200 Cost of goods sold 587,100 6132,500 Interest expense 8,700 15,000 Income tax expense 14,992 25,183 Net income 169,208 239,517 Basic earnings per share 4.03 5.07 Cash dividends per share 3.80 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 91,300 85,800 113,000 210,000 236,000 142,100 100, 500 $504,240 $540, 800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 61,600 398,000 210,000 132,492 $ 53,200 107,400 372,500 236,000 49,783 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 (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. (b) Acid-Test Ratio Choose Numerator: Acid-Test Ratio Company Cash Barco | $ + + Choose Denominator: Current receivables I Current liabilities 34,4001 | $ 53,4001$ Acid-test ratio 0.8 to 1 19,500 + 66,340/= 91,300 Kyan 33,000 + + 0.9 to 1 . (c) Company Choose Numerator: Accounts Receivable Turnover I Choose Denominator: Accounts Receivable Turnover | Accounts receivable turnover 0 times 0 times Barco Kyan (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: = Inventory Turnover Inventory turnover Barco o times Kyan 0 times (e) Days' Sales in Inventory. | Choose Denominator: Company Choose Numerator: Days XX = Days' Sales in Inventory Days' sales in inventory 0 days 0 days Barco Kyan Days' Sales Uncollected CompanyChoose Numerator: oose Denominator: s' Sales Uncollected Barco XXX = Days' sales uncollected 0 days 0 days Kyan Better short-term credit risk