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 Company Kyan Company 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 Total assets $ 19,5ee 39,4ee le.eee 84,340 5,700 35e,eee $ 508,940 $ 30,eee 58,4ee 7.480 138,5ee 7,450 34, 4ee $546, 150 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share $ 770,000 586,100 8,600 14,300 160,5ee 4.72 3.30 2,2 636) See 13,000 24907 227,793 $.81 3.97 $ 52,200 Liabilities and Equity Current liabilities Long-ters notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 64,340 $ 101,300 94, see 1eg,eee 17e, eee 196,eee 189,80 139,85e S508.540 546.15e Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 26,800 @ 61,600 425,000 170,000 153,500 107|400 392,500 196eee 67.681 Required: 1o. For both companies compute the (a current ratio, (b) acid-test ratio, (accounts (including notes) receivable turnover, (dInventory turnover, le days' sales in inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk Retained earnings Total liabilities and equity 189,880 139,85e sses, 940 $546,152 common stock, ss par value Retained earnings 170,000 158,500 196000 67,681 Required: 1o. For both companies compute the (c) current ratio, (b) acid-test ratio, accounts (including notes) receivable turnover, ( days' sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. inventory turnover, Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio 1A Acct Rec Tum 1A Days Sal in Ratio 1A Invent Turnover 1A Days Sal Uncol Reg 1B Inv For both companies compute the current ratio. Company Choose Numerator: Current Ratio Choose Denominator - Current Ratio = Current ratio Barco 1A Acid Test Ratio > Retained earnings Total liabilities and equity 189,80 139,sse $588,940 $546,150 common stock, $5 par value Retained earnings 170,eee 158,500 1960 67,681 Required: 1o. For both companies compute the (c) current ratio, (b) acid-test ratio, (d accounts (including notes) receivable turnover, (dInventory turnover (@days' sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid est Rati 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Reg 1B For both companies compute the acid-test ratio. (b) Acid.Test Ratio Company Choose Numerator: Choose Denominator: - Acid-Test Ratio Acid-test ratio Barco Kyan Retained earnings Total liabilities and equity 189,800 139,859 ses, 90 $546,152 common stock, 35 par value Retained earnings 170,0 153,500 1969 67,681 Required: 1o. For both companies compute the current ratio, () acid-test ratio, (d accounts (including notes) receivable turnover. Id inventory turnover, (e) days' sales in inventory, and (6 days' sales uncollected. (Do not round intermediate calculations.) Tb. Identify the company you consider to be better short-term credit risk Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio Appact Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Reg 10 For both companies compute the accounts (including notes) receivable turnover. (0) Company Choose Numerator: Accounts Receivable Turnover Choose Denominator: - Accounts Receivable Turnover = Accounts receivable turnover times Barco Kyan times 1A Acid Test Ratio 1A Invent Turnover > Retained earnings Total liabilities and equity 189,80 $588,948 139,85e $546,150 Common stock, $5 par value Retained earnings 170,eee 158, 588 196) eee 67,681 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, accounts (including notes) receivable turnover, (d) inventory turnover, (e days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 Iny 1A Days Sal Uncol Reg 1B For both companies compute the inventory turnover. Inventory Tumover Choose Denominator: Company Choose Numerator: Inventory Turnover = Inventory turnover Barco times Kyan Itimes ( 1A Acct Rec Turn 1A Days Salin Inv > Retained earnings Total liabilities and equity 189,880 $588,90 139,85e 546. 150 Connon stock, 55 par value Retained earnings 170, 196,00 158, 5ee6 7,681 Required 1o. For both companies compute the current ratio, (acid-test ratio, accounts (including notes) receivable turnover, (d) inventory turnover, (e days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 1A Days Sal Reg 18 In Uncol For both companies compute the days' sales In Inventory. Days' Sales in Inventory Choose Denominator: Company Choose Numerator: Days - Days' Sales in Inventory Days' sales in inventory days days 196/ Retained earnings Total liabilities and equity 189,880 139,850 $ 58,940 $546,150 Comon stock, $5 par value Retained earnings 170,eee 158, 580 67,681 Required: 1o. For both companies compute the current ratio. (b) acid-test ratio, accounts (including notes) receivable turnover, (inventory turnover, days sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Rato IA Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Reg 1B For both companies compute the days' sales uncollected. Days' Sales Uncollected Choose Denominator: x Company Choose Numerator: Days - Days' Sales Uncollected Days' sales uncollected days days Barco Kyan Retained earnings Total liabilities and equity 189.see $ 508,940 139. $546,150 Connon stock, $5 par value Retained earnings 170,eee 158, see 196eee 67,681 Required: 10. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 1A Invent Turnover 1A Days Sal in 1A Days Sal Turn Req 18 Iny Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk