Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current years income statement Assets Sales $ 810,000 $ 881,200 Cash $ 18,500 $ 34,000 Cost of goods sold 591,100 640,500 Accounts receivable, net 39,400 51,400 Interest expense 8,000 15,000 Merchandise inventory 84,840 136,500 Income tax expense 15,569 24,327 Prepaid expenses 5,300 6,950 Net income 195,331 201,373 Plant assets, net 320,000 311,400 Basic earnings per share 4.65 4.46 Total assets $ 468,040 $ 540,250 Cash dividends per share 3.79 3.98 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 69,340 $ 91,300 Accounts receivable, net $ 27,800 $ 52,200 Long-term notes payable 83,800 109,000 Merchandise inventory 59,600 107,400 Common stock, $5 par value 210,000 226,000 Total assets 418,000 372,500 Retained earnings 104,900 113,950 Common stock, $5 par value 210,000 226,000 Total liabilities and equity $ 468,040 $ 540,250 Retained earnings 68,749 92,473

rev: 11_27_2019_QC_CS-192168

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. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.