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 Canh $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Barco Nyan Company Company Data from the current year'. Income statement Sales $770,000 $800,200 Cont of goods sold 585, 100 632,500 Interest expenso 7.900 13,000 Income tax expense 14,000 24,300 Net income 162,200 210,400 Basic earningo per share 4.51 5.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,000 101,000 180,000 206,000 123,300 142, 150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206.000 98,300 93.600 quired: For both companies compute the (a) current ratio. (b) acid-test ratio. (accounts recevable turnover. (c) inventory turnover. (e) days! des in inventory, and (7 days' sales uncollected. (Do not round Intermediate calculations.) Identify the company you consider to be the better short-term credit risk. HH Next > Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover (c) Inventory turnover (edays! sales in inventory, and (1) 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 Ratio 1A Acct Rec Turn 1A Invent Turnover 1B short term 1A Days Salin Inv 1A Days Sal Uncol For both companies compute the inventory turnover. (d) Company Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover Inventory turnover times Barco times = Required: 1a. For both companies compute the (a) current ratio, () acid-test ratio, ( accounts receivable turnover, (d) inventory turnover, sales in inventory, and (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 1B short term 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol For both companies compute the days' sales in inventory. Days' Sales In Inventory Company Choose Numerator: 1 Choose Denominator: Days Days' Sales in Inventory Days' sales in inventory days days X / - x Barco Kyan / 1A Days Sal Uncol 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk