Summary information from the financial statements of two companies competing in the same industry follows. Barco Barco Company Kyan Company Kyan Company Company Data from the current year-end Data from the current year's balance sheets Assots Cash $ 22,500 Accounts receivable, net 38,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 451,840 $540,100 180,000 128,700 $ 451,840 $ 540,100 85,040) $ 31,000 58,400 132,500 income statement Sales Cost of goods sold Interest expense Income tax expense $760,000 $ 912,200 595,100 648,500 8,400 16,000 14,608 25,183 5,900 300,000 7,800 Net income 141,892 222,517 310,400 Basic earnings per share 3.94 4.92 data $ 63,340 79,800 $91,300 105,000 Accounts receivable, net Cash dividends per share Beginning-of-year balance sheet Merchandise inventory $ 31,800 $ 52,200 61,600 105,400 226,000 Total assets 388,000 412,500 117,800 Common stock, $5 par value 180,000 226,000 Retained earnings 123,968 76,083 3.81 4.00 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 ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Answer is not complete. 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 current ratio. (a) Company Numerator: Barco Kyan Current Ration Current Denominator: Ratio Current ratio. to 0 1 10 0 1 <1a current ratio 1a acid test> 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec 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 Barco . Kyan + Acid-Test Ratio Acid-Test Numerator: Denominator: => Ratio Acid-test ratio to 0 1 10 0 1 <1a current ratio 1a acct rec turn> 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Numerator: Barco Kyan Accounts Receivable Turnover Denominator: Accounts Receivable Turnover. Accounts receivable turnover 0 times 0 times <1a acid test ratio 1a invent turnover> For both companies compute the inventory turnover. (d) Company Numerator: Barco Kyan Inventory Turnover Denominator: Inventory Turnover Inventory turnover = O times O times < 1A Acct Rec Turn 1A Days Sal in Inv > 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Barco Kyan Numerator: Days' Sales in Inventory Denominator: Days Days' Sales in Inventory Days' sales in inventory O days 0 days < 1A Invent Turnover 1A Days Sal Uncol > For both companies compute the days' sales uncollected. Days' Sales Uncollected (5) Company Numerator: 1 Barco Kyan Denominator: x Days Days' Sales Uncollected = Days' sales uncollected 0 days 0 days < 1A Days Sal in Inv 1B short term >