Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Barco Kyarn Company Company Data from the current year's income statement Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets s 19,500 34,000 Cost of goods sold 37,400 57,400 Interest expense $770,000 $880,200 585,100 632, 00 7,900 13,000 9,100 7,200 Income tax expense 14,800 24,300 84, 440 132,500 Net income 6,950 Basic eanngs per share 290,000 304, 400 Cash dividends per share 162,200 210,400 4.51 511 3.93 5, 000 3.81 $445,440 $542,450 Beginning-of-year balance sheet data Account, receivable, net $ 29,800 54, 00 Current notes receivable (trade Liabilities and Equity Current liabilities 61,340 93,300 Long-term notes payable Common stock, $5 par value Retained earnings 55,600 107,400 398, 000 382, 500 123,300 142,150 Common stock, $5 par value 180,000 206, 900 98,300 93, 600 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets Total liabilities and equity $445,440 $542,450 Retained earnings Problem 13-5A Part1 Required 1a. For both companies compute the (aj current ratio, (d) acid-test ratio, (c) accounts (including notes) receivable turnover, (d inventory turnover, (e) days' sales in inventory, and (days' sales uncollected. (Do not round Intermediate calculatlons.) b. 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 1A Days Sal in 1A Days Sal Ratio Turn Turnover Uncol For both companies compute the days' sales in inventory Company Choose Numerator:Choose Denominator: x Days Days' Sales in - Days sales in inventory Barco days days 1A Invent Turnover 1A Days Sal Uncol