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 $ 22,500 $ 31,000 Accounts receivable, net 34,400 58,400 Merchandise inventory 84,840 138,500 Prepaid expenses 5,200 7,800 Plant assets, net 330,000 306,400 Total assets $476,940 $542,100 Barco Kyan Company Company Data from the current year's income statement Sales $790,000 $928,200 Cost of goods sold 586, 100 634,500 Interest expense 8,600 15,000 Income tax expense 15,185 25,625 Net income 180, 115 253, 075 Basic earnings per share 4.50 5.36 Cash dividends per share 3.82 3.98 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 70,340 $100,300 80,800 113,000 200,000 236,000 125,800 92,800 $476,940 $542,100 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 56,200 55,600 107,400 458,000 382,500 200,000 236,000 98,485 27 581 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 (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 Salin Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio 1 Choose Denominator: Current Ratio Current ratio oto 1 Barco 1 Kyan 1 - 0 to 1