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 vears income statement Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets $770,000 $907,200 588,100 630,500 8,500 16,000 14,800 25,045 158,600 235,655 5.45 3.93 $ 18,500 37,000 Cost of goods sold 36,400 60,400 Interest expense 8,200 Income tax expense 9,800 84,840 134,500 Net income 7,100 Basic earnings per share 3.60 3.74 5,800 350,000305,400 Cash dividends per share $505,340 $552,600 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 29,800 $ 51,200 $67,340 $103,300 Current notes receivable (trade) 63,600 107,400 438,000 412,500 220,000 216,000 140,160 62,421 83,800 105,000 Merchandise inventory 220,000 216,000 Total assets 134,200128, 300 Common stock, $5 par value $505,340 $552,600 Retained earnings Total liabilities and equity Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) 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 better short-term credit risk. Required information Complete this question by entering your answers in the tabs below 1A Current1A Acid Test 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 1B Ratio Ratio For both companies compute the current ratio urrent Rati Choose Current Ratio Current ratio Company Numerator Choose Denominator: Current assetsCrn labiities Current liabilities 0.6 to 247,200 X 155,340S Barco 0.7 to 103.300 Kyan 67,340 x Required intormation Complete this question by entering your answers in the tabs below. 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days SaR 1 1A Current Req 1B Turn Uncol Ratio Ratio Turnover Inv For both companies compute the acid-test ratio. Acid-Test Ratio Acid-Test Ratio Acid-tes ratio Company Choose Numerator: Choose Denominator: to Barco to Kyan Required intormation Complete this question by entering your answers in the tabs below 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales in inventory Days' Sales in Inventory Days' Sales in Company Choose Numerator: Choose Denominator: x Days Inventor Cost of goods sold - Days' sales in inventory 1A Invent Turnover days days Barco Kyan Complete this question by entering your answers in the tabs below Req 1B 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in1A Days Sal Uncol Inv Turnover Turn Ratio Ratio For both companies compute the days' sales uncollected Days' Sales Uncollected Days' Sales Uncollected Days' sales uncollected x Days Choose Denominator: ompany Choose Numerator: days Barco days Kyan