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 Cash Accounts receivable, net 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 $ 20,500 37,400 84,540 6,000 350,000 $ 498,440 $ 34,000 55,400 140,500 7,750 306,400 $ 544,050 Data from the current year's income statement Sales Cost of goods sold 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 $ 780,000 593, 100 7,700 14,992 164,208 4.32 3.71 $ 903,200 642,500 18,000 24,935 217,765 5.04 4.00 $ 68,340 $ 100,300 83,800 101,000 190,000 216,000 156,300 126,750 $ 498,440 $ 544,050 $ 31,800 59,600 388,000 190,000 133,072 $ 50,200 117,400 412,500 216,000 81,785 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 ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Select the category for each of the following accounts of a manufacturing company as either selling expenses or general and administrative expenses, or cost of goods manufactured. Category Account Salesperson travel costs Office accounting Salesperson smartphone costs Advertising Work in process inventory, beginning Computer supplies used in office Depreciation expense-Factory Depreciation expense-Office Wages for assembly workers Office employee wages Factory maintenance wages