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Summary information from the financial statements of two companies competing in the same industry follows. Kyan Company Barco Company Data from the current year-end balance

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Summary information from the financial statements of two companies competing in the same industry follows. Kyan Company Barco Company Data from the current year-end balance sheets Assets $ 22,500 Accounts receivable, net 40. 400 Current notes receivable (trade) 10,100 Merchandise Inventory 84,340 Prepaid expenses 5.400 Plant annet.net 290.000 Total assets $452.740 $ 33,000 54.400 ,000 136,500 7,850 105.400 $546,150 Barco Ryan Company Company Data from the current year'Income statement sales $780,000 $898,200 cost of goods sold 585,100 634,500 Interest expense 7,700 15,000 Tncome tax expense 14,992 24.1797 Net Income 172,208 221,903 Basie earnings per share 4.31 4.74 Cash dividende per share 3.76 3.94 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $61.340 85,800 200.000 103.600 $452,740 99,300 105,000 236,000 105,50 $546, 150 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise Inventory Total assets Common stock, 35 par value Retained earnings $ 29,800 $ 54,200 0 55,600 115.400 398,000 402.500 200,000 236.000 83,792 67,915 Required: la. For both companies compute the (a) current ratio. (b) acid-test ratio, ( accounts (including notes) receivable turnover. (d) inventory urnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) Ib. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. A Days Salin 1A Current Ratio LA Acid Test Ratio 1A Acct Rec Tum 1A Invent Turnover A Days Sal Uncol Reg 1B th Identify the company you consider to be the better short-term credit risk. Better short-term credit risk

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