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 Data from the current year- end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 6,199 340,000 $ 492,440 $ 537,950 $ 65,340 80,800 210,000 136,300 data $ 92,300 105, 000 Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory Barco Company Kyan Company Kyan Company Company Data from the current year's income statement $ 21,500 $ 36,000 40,400 57,400 84,440 132,500 7,650 Sales Cost of goods sold Interest expense Income tax expense Net income $760,000 $ 900,200 588,100 644,500 7,800 18,000 14,608 24,852 149,492 212,848 304, 400 Basic earnings per share 3.56 5.17 3.79 4.02 $ 29,800 $ 50,200 55,600 111,400 206, 090 Total assets 438,000 372,500 134, 650 Total liabilities and equity $492,440 $ 537,950 Common stock, $5 par value Retained earnings 210,000 206,000 145,988 87,426 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 () days' sales uncollected. Note: 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 1A Acid Test Ratio Ratio 1A Acct Rec Tum 1A Invent Turnover LA Days Sal In Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: = Current Ratio =1 Current ratio = 0 to 1 =1 0 to 1 1A Current Ratio 1A Acid Test Ratio >