Seved Help 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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $790,000 $890,200 Cash $ 20,500 $ 33,000 Cost of goods sold 593, 100 632,500 Accounts receivable, net 37,400 58,400 Interest expense 7.700 15, eee Merchandise inventory 84,740 138,500 Income tax expense 15, 185 24,576 Prepaid expenses 5,600 7.700 Net income 174,015 218,124 Plant assets, net 300,000 307,400 Basic earnings per share 5.44 5.29 Total assets $448, 240 $545,000 Cash dividends per share 3.74 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 94,300 Accounts receivable, net $ 29,800 $ 52,200 Long-tern notes payable 82,800 111.900 Merchandise inventory 61,600 115,400 Common stock, $5 par value 160,000 206,000 Total assets 488,000 412,500 Retained earnings 138, 100 133,700 Connon stock, $5 par value 160,000 206, Bee Total abilities and equity $448,240 $545,000 Retained earnings 83,765 80,788 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (a 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 Tum 1A Inwent Tumover 1 A Days Sal in 1A Days Sal Inv Uncol 1B short term EAR Required: 1a. For both companies compute the (@) current ratio, (b) acid-test ratio, ( accounts receivable turnover (o) 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 LA Acid Test 1A Acct Rec 1A Invent Ratio Ratio Tum Tumover For both companies compute the current ratio. 1A Days Sal in 1A Days Sal Uncol 1B short term (a) Company Choose Numerator: Current Ratio Choose Denominator: Barco Kyan * Current Ratio = Current ratio to 1 to 1 1A Acid Test Ratio > Required: 1a. For both companies compute the (current ratio, (b) acid-test ratio, ( accounts receivable turnover. (ainventory turnover. (edays' 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. 1A Current Ratio LA Acid Test 1A Acct Rec Ratio Turn 1A Invent A Days Salin 1A Days Sal Turnover Iny Uncol 18 short term For both companies compute the acid-test ratio Acid-Test Ratio (b) Company Choose Numerator Choose Denominator: Acid-Test Ratio Acidosta tot tot Barco Kyan - Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts receivable turnover (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 Act Rec Tum 1A Invent Turnover 1A Days Sal in 1A Days Sal Iny Uncol 18 short term For both companies compute the accounts (including notes) receivable tumover. (c) Accounts Receivable Turnover Company Choose Numerator: 1 Choose Denominator: = Accounts Receivable Tumover Accounts receivable turnover Barco times Kyan times Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio. ( accounts receivable turnover (c) 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. 18 short term 1A Current LA Acid Test 1A Acct Rec 1A Invent 1A Days Salin A Days Sal Ratio Ratio Tum Turnover Inv Uncol For both companies compute the inventory turnover. (0) Company Choose Numerator: Inwentory. Tumover 1 Choose Denominator: Barco Kyan Inventory Turnover Inventory tumover times times Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, ( accounts receivable turnover. (a) 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. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Tum 1A Invent 1 Das Sal in 1A Days Sal Turnover thy Uncol 18 short term For both companies compute the days' sales in inventory. (0) Company Choose Numerator Days Sales In Inventory 1 Choose Denominator * Days - Days Sales in Inventory - Days' sales in inventory X days days X = Barco Kyan X Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (d accounts receivable turnover (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. Ratio in 1A Current 1A Acid Test 1A Acet Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Tum Tumover Uncol 1 short term For both companies compute the days' sales uncollected. Days. Sales Uncollected Company Choose Numerator Choose Denominator x Days - Days' Sales Uncollected Days' salers uncollected Barco Kyan day day Required: 1a. For both companies compute the (a) current ratio, (6) acid-test ratio, (accounts receivable turnover, () inventory turnover, (e) days' sales in inventory, and (1) 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. B short term 1A Current LA Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Tum Tumover Inv Uncal Identify the company you consider to be the better short-term credit risk. Better short-term credit risk