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 Barco Kyan Company Company Company Company Data fron the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $890, 200 Cash $ 20,500 $ 36,000 Cost of goods sold 592, 100 644,500 Accounts receivable, net 37,400 55,400 Interest expense 7,800 15,000 Merchandise inventory 84.940 134,500 Income tax expense 14,800 24,576 Prepaid expenses 5, 100 7.150 Net income 155,300 286, 124 Plant assets, net 280,000 310,400 Basic earnings per share 3.88 4.77 Total assets $427,940 $543,450 Cash dividends per share 3.82 4.02 Liabilities and Equity Current Liabilities Long-tera notes payable Connon stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 62,348 $104,380 Accounts receivable, net 79,800 115,008 Merchandise inventory 200,000 216,000 Total assets 85,800 108, 150 Common stock, 35 par value $427,940 $543, 450 Retained earnings $ 28,800 $ 53,00 55,600 115,400 378,000 372,500 200,000 216,000 83,300 75,6690 Required: 1a. For both companies compute the current ratio, (b) acid-test ratio (a accounts receivable turnover. (Inventory turnover (@days! sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk For both companies compute the current ratio. Company Choose Numerator: Current Ratio 7. Choose Denominator: 1 Current Ratio 11 Current ratio 1 11 Barco Kyan to 1 1 11 to 1 (b) Company Acid-Test Ratio Choose Numerator: Choose Denominator Barco Acid-Test Ratio Acid-test ratio Kyan to 1 to 1 (SA Current Ratio 1A Acct Rec Turn For both companies compute the accounts (including notes) receivable turnover. Company Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: = Accounts Receivable Turnover - Accounts receivable turnover times Barco II Kyan 11 times 1A Acid Tent Patio (d) Company Choose Numerator: Inventory Turnover Choose Denominator: = Inventory Turnover Inventory turnover 1 = Barco 7 11 times Kyan - times For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales In Inventory 1 Choose Denominator: 11 Days Barco = Days' Sales In Inventory = Days' sales in inventory days days x 11 Kyan TE