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 year's income statement Assets Sales $780,000 $885,200 Cash $ 21,000 $ 36,000 Cost of goods sold 585,100 646,500 Accounts receivable, net 34,400 56,400 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 84,940 5,500 350,000 $495,840 $ 545,600 $ 64,340 80,800 190,000 160,700 $ 96,300 107,000 206,000 136,300 $495,840 $ 545,600 136,500 7,300 309,400 Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 8,000 19,000 14,992 24,438 171,908 195,262 4.52 4.74 3.75 3.98 $ 28,800 $ 58,200 57,600 109,400 458,000 382,500 190,000 206,000 131,292 105,014 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 (6 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ration 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 18 short term For both companies compute the current ratio. Prov 12 of 3 Next >>