Summary information from the financial statements of two companies competing in the same industry follows. $ $ Accounts receivable, net Merchandise inventory Prepaid expenses 19,000 32,000 38,400 53,400 Interest expense Barco Kyan Company Company Barco Kyan Company Company Data from the current year-end Data from the current year's income balance sheets statement Assets Cash $ Sales 800,000 889, 200 Cost of goods sold 592,100 636,500 7,800 12,000 84,540 130,500 Income tax expense 15,377 24,548 Plant assets, net 5,900 7,450 Net income 350,000 310,400 184,723 216,152 Basic earnings per share 4.62 5.00 $ Cash dividends per Total assets Liabilities and Equity 3.82 3.94 497,840 533,750 share Beginning-of-year balance sheet data Current liabilities $ 69,340 $ Accounts receivable, 97,300 net 26,800 54, 200 Long-term notes 85,800 117,000 Merchandise inventory 63,600 113,400 payable Common stock, $5 par value 200,000 216,000 Total assets 378,000 422,500 Retained earnings 142,700 103,450 Common stock, $5 par value 200,000 216,000 Total liabilities and equity $ 497,840 533,750 Retained earnings 110,777 57,506 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 (f) 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. Ratio 1A Current 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 18 short term For both companies compute the acid-test ratio. (b) Company Acid-Test Ratio Cash Numerator: Current assets Denominator: Current receivables Current liabilities Acid-Test Ratio Acid-test ratio Barco $ 19,000+ S Kyan $ 32,000+ S 38,400 + 53,400+ 0 to 1 0 to 1 E