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 $ 31,000 Accounts receivable, net 36,400 51,400 Merchandise inventory 84,440 136,500 Prepaid expenses 5,900 7,100 Plant assets, net 330,000 306,400 Total assets $476,240 $532,400 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $899,200 Cost of goods sold 583,100 636,500 Interest expense 7,800 12,000 Income tax expense 15,377 24 824 Net income 193,723 225,876 Basic earnings per share 5.70 4.79 Cash dividends per share 3.77 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 95,300 80,800 105,000 170,000 236,000 159,100 96,100 $476,240 $532,400 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 56,200 57,600 105,400 438,000 372 500 170,000 236,000 93,557 58.552 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 (6 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio | Choose Denominator: = Current Ratio = Current ratio 0 to 1 0 to 1 Barco Kyan 11 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 Inv Uncol 1B short term For both companies compute the acid-test ratio. (b) Acid-Test Ratio Company Choose Numerator: Choose Denominator: = Acid-Test Ratio Acid-test ratio 0 to 1 Barco Kyan + 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Uncol 18 short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover Choose Denominator: Accounts Receivable Turnover = Accounts receivable turnover 0 times 0 times 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 1A Days Sal Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover 1 Choose Denominator: 1 Inventory Turnover = Inventory turnover 0 times 0 times 11 Barco Kyan 11 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 Inv Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory. I Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory 0 days 0 days = 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 1 A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. (f) CompanyChoose Numerator: Days' Sales Uncollected 1 Choose Denominator: x Days 1 X = Days' Sales Uncollected = Days' sales uncollected 0 days 0 days Barco = 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 1 A Days Sal in 1A Days Sal Inv Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk Uncol 1B short term > Barco company Kyan company