Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21,000 $ 33,000 Accounts receivable, net 35,400 58,400 Merchandise inventory 84,440 130,500 Prepaid expenses 5,200 7,000 Plant assets, net 340,000 309,400 Total assets $486,040 $538,300 Barco Kyan Company Company Data from the current year's income statement Sales $ 790,000 $901,200 Cost of goods sold 595, 100 630, 500 Interest expense 8,500 11,000 Income tax expense 15,185 24,879 Net income 171,215 234,821 Basic earnings per share 4.08 5.44 Cash dividends per share 3.80 4.02 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 68,340 $ 92,300 83,800 107,000 210,000 216,000 123,900 123,000 $486,040 $538,300 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 51,200 55,600 109,400 428,000 362,500 210,000 216,000 112,285 61, 843 Problem 17-5A Part 1 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. 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. Current Ratio (a) Company Choose Numerator: 1 Choose Denominator: = Current Ratio / II Current ratio Barco / = 0 to 1 0 to 1 Kyan / = 1A Current Ratio 1A Acid Test Ratio > 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 acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio + + / II Acid-test ratio 0 to 1 Barco + + 1 II yan + + 0 to 1 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 accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: | Choose Denominator: = Accounts Receivable Turnover 1 = Accounts receivable turnover Barco = 0 times Kyan 1 II 0 times 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 inventory turnover. Inventory Turnover (d) Company Choose Numerator: | Choose Denominator: = Inventory Turnover = Inventory turnover 1 Barco / = 0 times Kyan / = O times 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 days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory. | Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory / Barco = 0 days 0 days 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 Iny 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. Days' Sales Uncollected (f) CompanyChoose Numerator: | Choose Denominator: Days = Days' Sales Uncollected = Days' sales uncollected 1 Barco II 0 days Kyan = days 1A Days Sal in Inv 1B short term 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 Identify the company you consider to be the better short-term credit risk. Better short-term credit risk