Summary information from the financial statements of two companies competing in the same industr Kyan Company Barco Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ Accounts receivable, net 33,400 Current notes receivable (trade) 9,400 Merchandise inventory 84,640 Prepaid expenses 5,900 Plant assets, net 300,000 Total assets 455,340 $ 36,000 53,400 7,600 130,500 7,650 310,400 545,550 $ Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 60,340 $ 80,800 180,000 134,200 455,340 $ 91,300 117,000 216,000 121,250 545,550 $ Data from the current year's income statement Sales 780,000 $ Cost of goods sold 585,100 Interest expense 8,800 Income tax expense 14,992 Net income 171, 108 Basic earnings per share 4.75 Cash dividends per share 3.73 885, 200 638,500 15,000 24,438 207, 262 4.80 4.00 $ Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 31,800 $ 0 63,600 418,000 180,000 97,372 51,200 0 109,400 402, 500 216,000 86,788 Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (o) inventory turnover, (e) days' sales in Inventory, and (7 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be 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 Ratio Turn Turnover For both companies compute the current ratio. 1A Days Sal in 1A Days Sal Inv Uncol Reg 1B Company Choose Numerator (a) Current Ratio 1 Choose Denominator: 1 Current Ratio Current ratio 0 to 1 Barco 1 Required: 1a. For both companies compute the (a) current ratio, (0) acid-test ratio, ( accounts (including notes) receivable turnover. (Inventory turnover (e) days' sales in inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) 1b. Identify the company you consider to be 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 A Days Salin 1A Days Sal Ratio Ratio Reg 16 Turn Turnover Inv Uncat For both companies compute the acid-test ratio. (1) Acid Test Ratio Choose Denominator Company Choose Numeratori - Acid-Test Ratio Adid.tostrato o tot Barco Kyan + + + o to Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (accounts (including notes) 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 better short-term credit risk. Complete this question by entering your answers in the tabs below. Reg 1B 1A Current IA Acid Test 1A Acct Rec 1A Invent 1A Days Salin 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the accounts (including notes) receivable turnover. Choose Company Numerator: (c) Accounts Receivable Turnover 1 Choose Denominator Accounts Receivable Turnover - Accounts receivable turnover ### O times Barco O times Kyan 1A Invent. Turnover> 1A Acid Test Ratio 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Iny 1A Days Sal Uncol Reg 1B For both companies compute the inventory turnover. (d) Inventory Turnover 1 Choose Denominator: Company Choose Numerator: Inventory Turnover Inventory turnover O times Barco 1 O times Kyan Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover (a) 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 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 Salin 1A Days Sal Inv Uncol Reg 18 For both companies compute the days' sales in inventory (6) Days Sales In Inventory Company Choose Numerator: Choose Denominator Days Daye Sales In Inventory Days' sales in inventory 0 days O days Barco Kyan 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 1A Days Sal Uncol Reg 1B Inv For both companies compute the days' sales uncollected. 7 Days Sales Uncollected 1 Choose Denominator: x Days CompanyChoose Numerator - Days' Sales Uncollected = Days' sales uncollected O days Barco : X O days Kvan 1 Required: 1a. For both companies compute the (a) current ratio, (b) 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 calculations.) 1b. Identify the company you consider to be better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio Reg 18 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal In A Days Sal Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk