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 $ 22,500 $ 34,000 Accounts receivable, net 35, 400 58,400 Current notes receivable (trade) 9,400 7,200 Merchandise inventory 84,640 142,500 Prepaid expenses 5,600 7,550 Plant assets, net 340,000 308,400 Total assets $497,540 $558,050 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $895, 200 Cost of goods sold 583,100 640, 500 Interest expense 9,200 18,000 Income tax expense 14,608 24,714 Net income 153,092 211,986 Basic earnings per share 4.254 .31 Cash dividends per share 3.73 3.92 $ 27,800 $ 50,200 0 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 71,340 $103,300 83,800 105,000 180,000 246,000 162,400 103, 750 $497,540 $558,050 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 55,600 448,000 180,000 143,588 109,400 402,500 246,000 84,628 equired: .. For both companies compute the (a) current ratio, (b) acid-test ratio, (C) accounts (including notes) receivable turnover, (d) inventory rnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) . 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 Inv 1A Days Sal Uncol Req 1B For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio I Choose Denominator: Current Ratio Current ratio = to 1 | = | to 1 Barco Kyan 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 Inv 1A Days Sal Uncol Req 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 to 1 + + Kyan + to 1 + Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Tes Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Reg 1B For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: I Choose Denominator: = Accounts Receivable Turnover Accounts receivable turnover Barco times Kyan times 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 Inv 1A Days Sal | Uncol Reg 1B For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover I Choose Denominator: = Inventory Turnover Inventory turnover i times Barco Kyan = times 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 1A Days Sal Uncol Req 1B For both companies compute the days' sales in inventory. Days' Sales in Inventory (e) Company Choose Numerator: I Choose Denominator: Days X X = Days' Sales in Inventory = Days' sales in inventory days days Barco X Kyan X 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 Inv 1A Days Sal Uncol Req 1B For both companies compute the days' sales uncollected. (f) CompanyChoose Numerator: Days' Sales Uncollected I Choose Denominator: x Days = Days' Sales Uncollected Days' sales uncollected Barco x = days days Kyan 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 Inv 1A Days Sal Uncol Req 1B Identify the company you consider to be the better short-term credit risk. Better short-term credit risk