Summary information from the financial statements of two companies competing in the same industry follows. Barco 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 $ 20,000 36,400 85,040 5,700 300,000 $ 447,140 Kyan Company Data from the current year's income statement Sales $ 34,000 Cost of goods sold 51,400 Interest expense 134,500 Income tax expense 7,750 Net income 304,400 Basic earnings per share $ 532,050 Cash dividends per share Beginning-of-year balance sheet data $ 91,300 Accounts receivable, net 111,000 Merchandise inventory 196,000 Total assets 133,750 Common stock, $5 par value $ 532,050 Retained earnings $ 790,000 592,100 7,600 15,185 175, 115 5.47 3.73 $ 905, 200 642,500 15,000 24,990 222,710 5.68 4.02 $ 67,340 83,800 160,000 136,000 $ 447,140 $ 25,800 61,600 448,000 160,000 80, 245 $ 51,200 113,400 492,500 196,000 68,624 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. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Current Ratio Denominator: Numerator: 1 = Current Ratio Current ratio to 1 Barco Kyan to 1 1AAH.. Tast Datic