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 Cash $ 20,000 $ 36,000 Accounts receivable, net 39,480 55,400 Merchandise inventory 84,940 132,500 Prepaid expenses 5,589 7,550 Plant assets, net 360,000 310,400 Total assets $509,840 $541,850 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $922,200 cost of goods sold 587,100 644,500 Interest expense 9,100 11,000 Income tax expense 15,569 25,459 Net income 198,231 241,241 Basic earnings per share 5.22 5.86 Cash dividends per share 3.78 4.03 Liabilities and Equity Current liabilities Long-ters notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 71,340 $102, 300 78,800 111,000 190,000 206,000 169,700 122,550 $509,840 5541,850 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 32,800 $ $4,200 63,600 113,480 388,000 372,500 199,000 206,000 115,1097 ,345 Problem 17-5A Part 1 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (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