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 32,000 20,500$ Cash Accounts receivable, net 50,400 8,000 36,400 Current notes receivable (trade) Merchandise inventory Prepaid expenses 9,100 132,500 7,550 84,240 5,300 308,400 320,000 Plant assets, net 538,850 S 475,540 $ Total assets Liabilities and Equity 93,300 105,000 70,340 $ Current liabilities Long-term notes payable Common stock, $5 par value 83,800 180,000 141,400 216,000 124,550 Retained earnings 475,540 $ 538,850 Total liabilities and equity Data from the current year's income statement 770,000 $ 911,200 640,500 18,000 Sales 586,100 8,500 Cost of goods sold Interest expense 14,800 160,600 25,155 Income tax expense 227,545 Net income 5.27 4.46 Basic earnings per share Cash dividends per share 3.94 3.74 Beginning-of-year balance sheet data 31,800 $ 58,200 Accounts receivable, net C Current notes receivable (trade) 55,600 109,400 Merchandise inventory 362,500 378,000 Total assets 216,000 180,000 Common stock, $5 par value 67,213 115,440 Retained earnings 1A Days Sal in 1A Days Sal Uncol 1A Acid Test 1A Acct Rec 1A Invent 1A Current Req 1B Inv Turnover Ratio Ratio Turn For both companies compute the current ratio. (a) Current Ratio Choose Denominator: Current Ratio Company Choose Numerator: Current ratio 0 to 1 Barco 0 to 1 Kyan 1A Current 1A Days Sal Uncol 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in Inv Req 1B Ratio Ratio Turn Turnover For both companies compute the acid-test ratio. (b) Acid Test Ratio Company Choose Numerator: Choose Denominator: = Acid-Test Ratio Acid-test ratio 0 to 1 Barco 0 to 1 Kyan 1A Current Ratio 1A Acct Rec Turn A + 1A Acid Test 1A Days Sal in Inv 1A Days Sal Uncol 1A Current 1A Acct Rec 1A Invent Req 1B Ratio Ratio Turn Turnover For both companies compute the accounts (including notes) receivable turnover (c) Accounts Receivable Turnover Choose Company Numerator: Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco 0 times 0 times yan www 1A Invent Turnover 1A Days Sal 1A Current Ratio 1A Acid Test 1A Acct Rec 1A Days Sal in Req 1B Ratio Inv Uncol Turn For both companies compute the inventory turnover. (d) Inventory Turnover Inventory Turnover Inventory turnover O times Choose Denominator: Company Choose Numerator: Barco |yan 0 times 1A Days Sal in 1A Days Sal 1A Acid Test 1A Acct Rec 1A Invent 1A Current Req 1B Uncol Ratio Turn Turnover Inv Ratio For both companies compute the days' sales in inventory (e) Days' Sales in Inventory Choose Denominator: Company Choose Numerator x Days Days' Sales in Inventory Days' sales in inventory O days Barco x 0 days Kyan 1A Invent Turnover 1A Days Sal Uncol 1A Days Sal Uncol 1A Days Sal in 1A Acct Rec 1A Invent 1A Current Ratio 1A Acid Test Req 1B Inv Turnover Turn Ratio For both companies compute the days' sales uncollected. () Days' Sales Uncollected Days' Sales Uncollected IChoose Denominator: Days x CompanyChoose Numerator: Days' sales uncollected 0 days X Barco 0 days yan X xx Complete this question by entering your ans swers in the tabs below. 1A Days Sal Uncol 1A Days Sal in Inv 1A Invent 1A Acid Test 1A Acct Rec Turn 1A Current Req 1B Turnover Ratio Ratio Identify the company you consider to be the better short-term credit risk. Better short-term credit risk