reye au urm. Summary information from the financial statements of two companies competing in the same industry follows. Rarco Barco Company Data from the current year-end balance sheets Kyan Company Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 19,500 $ 34,000 37.400 57,400 9,100 7.200 84.440 132.500 5.000 6.950 290,000 304,400 $445,440 $542, 450 Kyan Company Company Data from the current year's income statement Sales $770,000 $880,200 cost of goods sold 585,100 632,500 Interest expense 7,900 13,000 Income tax expense 14.800 24.300 Net Income 162,200 210.400 Basie earnings per share 4.515 .11 Cash dividende per share 3.81 3.93 $ 29,800 $54,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 85 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101.000 180,000 206.000 123,300 142.150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 55,600 398,000 180,000 98,300 107,400 382,500 206,00 93,600 Required: 1a. For both companies compute the current ratio, (5) acid-test ratio, id accounts (including notes) receivable turnover, (h) inventory turnover, (e) 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. 1 of 2 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts (including notes) receivable turnover, (d) ir 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. ebook 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover A Days Salin Iny A Days Sal Uncol 18 short term References For both companies compute the current ratio. Current Ratio Choose Denominator: Currenties Current Ratio Company Choose Numerator: Current assets Barcos 290.000 Kyan Current ratio 51.340 4.7 to 1 O to 1 1A Aeld Test Ratio >