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 Company Data from the current year-end balance sheets Data from the current year's income statement $770,000 92,100 Sales Assets 21,000 $ 30,000 59,400 8,200 138,500 7,700 308,400 Cost of goods sold Interest expense Cash 8,400 14,800 154,700 Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 38,400 Income tax expense 9,300 Net income Basic earnings per share Cash dividends per share 84,740 5,200 3.68 3.77 310,000 $468,640 $552, 200 Total assets Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory $ 27,800 Liabilities and Equity Current 1iabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 60,340 84,800 210,000 113,500 $ 93,300 101,000 216,000 141,900 59,600 428,000 210,000 Total assets Common stock, $5 par value $468,640 $552,200 Retained earnings 117,140 Total liabilities and equity Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (n days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk ns displayed below] nts of two companies competing in the same industry rco Kyan Company Barco Kyan pany aeets Company Company Data from the current year's income statement Sales $770,000 $901,200 1,000 $ 30,000 8,400 9,300 4,740 5,200 0,000 58,640 $552,200 Cost of goods sold 92,100 638,500 59,400 8,200 138,500 7,700 308,400 Interest expense 8,400 19,000 14,800 Income tax expense Net income Basic earnings per share Cash dividends per share 24,879 218,821 154,700 3.68 5.07 3.77 3.96 Beginning-of-year balance sheet data Accounts receivable , net $ 27,800 $ 56, 200 Current notes receivable (trade) Merchandise inventory Total assets 60,340 $ 93,300 84,800 101, 000 I59,600 428,000 10,000 109,400 402,500 216,000 -10, 000 216,000 -13,500 Common stock, $5 par value 141,900 94,151 117,140 68, 640 Retained earnings $552, 200 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d inventory turnover, (e) days' sales in inventory, and (n 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 Days Sal Uncol 1A Days Sal in Inv 1A Invent Turnover 1A Acid Test 1A Acct Rec Req 1B 1A Current Turn Ratio Ratio For both companies compute the current ratio. Current Ratio al Current Ratio Choose Denominator: Company Choose Numerator: Current ratio 0 to 1 Barco 0 to 1 Kyan 1A Acid Test Ratio Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (n 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 Acid Test Ratio 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Uncol 1A Current Req 1B Ratio Turn Turnover Inv For both companies compute the acid-test ratio. Acid-Test Ratio (b) Acid-Test Company Choose Numerator: Choose Denominator: Ratio Acid-test ratio Barco 0lto 1 Kyan 0l to 1 1A Current Ratio 1A Acct Ree Turn + b.Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Days Sal Uncol 1A Days Sal in Inv 1A Acct Rec 1A Invent 1A Acid Test 1A Current Ratio Req 1B Turn Turnover Ratio For both companies compute the accounts (including notes) receivable turnover Accounts Receivable Turnover (c) Accounts Receivable Turnover Choose Denominator: Company Choose Numerator Accounts receivable turnover 0 times Barco 0l times Kyan 1A Invent Turnover 1A Acid Test Ratio inventory turnover, (e) days sales ln venuly, uiu( i 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 Acid Test Ratio 1A Days Sal in Inv 1A Days Sal Uncol 1A Acct Rec 1A Current Ratio 1A Invent Turnover Req 1B Turn For both companies compute the inventory turnover. (d) Inventory Turnover Inventory Turnover Inventory turnover 0 times Company Choose Numerator: Choose Denominator Barco Kyan 0 times 1A Acct Rec Turn 1A Days Sal in Inv 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) recei inventory turnover, (e) days' sales in inventory, and (n days' sales uncollected. (Do not round intermediate 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 Days Sal in Inv 1A Acid Test 1A Invent Turnover 1A Days Sal Uncol 1A Current 1A Acct Rec Ratio Req 1B Ratio Turn For both companies compute the days' sales in inventory. (e) Days Sales in Inventory Company Choose Numerator Choose Denominator Days Days' Sales in Inventory Days' sales in inventory X Barco 0 days X Kyan 0 days X 1A Invent Turnover 1A Days Sal Uncol Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c accounts (including notes) recei inventory turnover, (e) days' sales in inventory, and (f days' sales uncollected. (Do not round intermediate 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 Acid Test 1A Acct Rec 1A Invent Turnover 1A Current 1A Days Sal in 1A Days Sal Req 1B Uncql Ratio Ratio Turn Inv For both companies compute the days' sales uncollected. (f Days Sales Uncollected Company Choose Numerator Choose Denominator: Days Days' Sales Uncollected Days' sales uncollected X Barco 0 days Kyan 0 days X 1A Days Sal in Inv Req 1B 00 Common stock, $5 par value Total liabilities and equity $468,640 $552,200 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d) accounts (including notes) re inventory turnover, (e) days' sales in inventory, and (n days' sales uncollected. (Do not round intermedi 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 Days Sal in Inv 1A Days Sal Uncol 1A Invent Req 1B Turnover Identify the company you consider to be the better short-term credit risk Better short-term credit risk 1A Days Sal Uncol