Summary information from the financial statements of two companies competing in the same industry follows Barco Company Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets AssetS Cash Accounts receivable, net Merchandise inventor Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $880,200 585,100 632500 7,900 13,000 14,800 241300 162,200 210,400 $ 19,500 34,000 Cost of goods sold 46,500 64,600 Interest expense 84,440 132,500 Income tax expense 5,000 6,950 Net income 299,000 304,400 Basic earnings per share $445,440 $542,450 Cash dividends per share 4.51 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of -year balance sheet data $61,340 $ 93,300 Accounts receivable, net 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300 142,150 Common stock, $5 par value $ 29,800 $ 54,200 55,600 107,400 398,000 382500 180,000 206,000 98,300 93 600 $445,440 $542,450 Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, () accounts receivable turnover, (d) inventory turnover, (e) days sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) b. Identify the company you consider to be the better short-term credit risk

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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 Data from the current year's income statement Sales Cash Accounts receivable, net 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 $ 19,500 $ 34,000 46,500 64,600 84,440 132,500 5,000 6,950 290,000 304,400 $445,440 $542,450 Cost of goods sold Interest expense Income tax expense Basic earnings per share Cash dividends per share 101,000 $ 61,340 $ 93,300 80,800 180,000 206,000 123,300 142,150 $445,440 $542,450 Net income Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Kyan Barco Company Company $770,000 $880,200 585,100 632,500 7,900 13,000 14,800 162,200 24/300 210,400 4.51 5.11 3.81 3.93 $ 29,800 $54/200 55,600 107,400 398,000 382, 500 180,000 206,000 98,300 93,600 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.