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 Company Barco Company Kyan Company 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 Total liabilities and equity $ 22,000 34,400 84,740 5,400 350,000 $ 496,540 1 Kyan Company Data from the current year's income statement Sales $ 33,000 Cost of goods sold 56,400 Interest expense 140,500 Income tax expense 7,200 Net Income 306,400 Basic earnings per share $ 543,500 Cash dividends per share Beginning-of-year balance sheet data $ 96,300 Accounts receivable, net 99,000 Merchandise inventory 236,080 Total assets 112,200 Common stock, 55 par value $ 543,500 Retained earnings $ 780,eee 588,180 9,200 14,992 167,708 3.99 3.72 $ 893,200 646,500 19,000 24,659 293,841 4.30 3.99 $ 71,340 83,800 210,000 131,400 $ 496,540 $ 29,800 57,600 428,000 210,000 119,932 5 56,289 109,400 412,500 236,000 97,487 Required: 1o. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover. Ich inventory turnover.tel days 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. co 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Salin 1A Days Sal Turnover Inv Uncol 10 short term For both companies compute the current ratio. {a) Company Current Ratio Denominator: Numerator: Current Ratio Current ratio to 1 to 1 Barco Kyan 1A Acid Test Ratio > Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover (oh inventory turnover, (e) days' sales in inventory, and (7 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 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the acid-test ratio. Acid Test Ratio (b) Company Numerator: Denominator: Acid-Test Ratio Acid-test ratio to 1 Barco Kyan to 1 Required: 1o. For both companies compute the (a current ratio, (b) acid-test ratio, ( accounts receivable turnover (ch inventory turnover. (e) days 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 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the inventory turnover. (d) Company Numerator: Inventory. Turnover Denominator: = Inventory Tumover Inventory turnove times times Barco 1 Kyan Required: 10. For both companies compute the () current ratio. (b) acid-test ratio, ( accounts receivable turnover (ch inventory tumover. (e) days' sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 15. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 18 short term 1A Current 1A Acid Test 1A Acet Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. Days' Sales Uncollected Denominator: Company Numerator: * Days = Days' Sales Un collected Days sales uncollected days days Barco Xxx = Kyan