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 Cash $ 19,500 $ 34,000 Accounts receivable, net ENELO Merchandise inventory Prepaid expenses 35,400 85,040 5,300 360,000 58,400 130,500 7,650 Sales Cost of goods sold Interest expense Income tax expense Net income $ 790,000 $ 919,200 585,100 646,500 7,800 12,000 15,185 25,376 181,915 5.35 3.74 235,324 5.21 4.01 Plant assets, net 306,400 Basic earnings per share Total assets $ 505,240 $ 536,950 Cash dividends per share Liabilities and Equity Current liabilities $ 68,340 Long-term notes payable Common stock, $5 par value Retained earnings 82,800 170,000 184,100 $ 102,300 111,000 226,000 Accounts receivable, net Beginning-of-year balance sheet data Merchandise inventory Total assets 97,650 Total liabilities and equity $ 505,240 $ 536,950 Common stock, $5 par value Retained earnings $ 29,800 $ 56,200 63,600 113,400 398,000 412,500 170,000 226,000 129,345 43,578 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 (f) days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. 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. Ratio 1A Current 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent 1A Days Sal in Turnover Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: Current Ratio Current ratio 0 to 1 == 0 to 1 1A Current Ratio 1A Acid Test Ratio >