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 $ 21.000 $37.000 Accounts receivable, net 39,400 51,400 Merchandise inventory 84,940 128,500 Prepaid expenses 5.800 7,400 Plant assets, net 320,000 307, 400 $471,140 $531,700 Barco Kyan Company Company Data from the current year's income statement Sales S800,000 $887,200 cost of goods sold 588,100 640.500 Interest expense 8,800 16,000 Income tax expense 15,377 24,493 Net income 187,723206, 207 Basie earnings per share 4.27 4.19 Cash dividends per share 3.76 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 95 par value Retained earnings Total liabilities and equity $ 68,340 $ 94, 300 79,800 105,000 220.000 246,000 103,000 86,400 $471,140 $531,700 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 5 par value Retained earnings $ 31,800 $ 51,200 63,600 111,400 418.000 372.500 220,000 246,000 80,717 76,593 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, () 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