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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

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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 $ 18,500 $ 35,000 39,400 56,400 84,640 142,500 5,100 7,050 310,000 304,400 $ 457,640 $ 545, 350 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 $ 810,000 592, 100 8,700 15,569 193,631 5.38 3.74 $ 908, 200 650,500 14,000 25,073 218,627 4.84 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $ 91,300 84,800 103,000 180,000 226,000 128,500 125,050 $ 457,640 $ 545, 350 $ 26,800 55,600 408,000 180,000 69,509 $ 51,200 115,400 412,500 226.000 87,223 Required: 10. For both companies compute the () current ratio, (b) acid-test ratio, (accounts receivable turnover. (c) inventory turnover, (e) days sales in inventory, and (days' sales uncollected. (Do not round intermediate calculations.) 15. 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 1A Acid Test 1A Acct Rec 1A Invent Ratio Turn Turnover For both companies compute the current ratio. Ratio 1A Days Salin A Days Sal Inv Uncol 18 short term (a) Company Numerator: Current Ratio Denominator Barco Kyan Current Ratio Current ratio to 1 tot LAR 1A Acid Test Ratio >

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