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 Data from the current years income statement Assets Sales $ 800,000 $ 881,200 Cash $ 21,500 $ 31,000 Cost of goods sold 591,100 650,500 Accounts receivable, net 40,400 58,400 Interest expense 7,900 12,000 Merchandise inventory 84,540 132,500 Income tax expense 15,377 24,327 Prepaid expenses 6,200 7,350 Net income 185,623 194,373 Plant assets, net 280,000 305,400 Basic earnings per share 4.88 4.12 Total assets $ 432,640 $ 534,650 Cash dividends per share 3.81 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 63,340 $ 100,300 Accounts receivable, net $ 31,800 $ 55,200 Long-term notes payable 84,800 111,000 Merchandise inventory 55,600 107,400 Common stock, $5 par value 190,000 236,000 Total assets 398,000 362,500 Retained earnings 94,500 87,350 Common stock, $5 par value 190,000 236,000 Total liabilities and equity $ 432,640 $ 534,650 Retained earnings 53,657 78,473 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 (f) days sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk.