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 Assets Data from the current year's income statement Sales $760,000 $904, 200 Cash $ 22,000 $31,000 Cost of goods sold 588,100 632,500 Accounts receivable, net 38,400 55,400 Interest expense Merchandise inventory Prepaid expenses Plant assets, het Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $481,140 $543,350 $ 70,340 $101,300 85,800 170,000 196,000 155,000 $481,140 $543,350 7,800 13,000 84,840 138,500 Income tax expense 14,608 24,962 5,900 130,000 7,050 Net Income 149,492 233,738 311,400 Basic earnings per share 4.40 1.961 Cash dividends per share 3.00 3.96 Beginning-of-year balance sheet data i Accounts receivable, net $ 31,800 $ 57 200 105,000 Merchandise inventory 61,600 107,400 Total assets 428,000 402500 141,050 Common stock, $5 par value Retained earnings 170,000 196,000 134,708 62 544 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 (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.