Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end Barco Company Kyan Company Data from the current year's balance sheets Assets Cash $ 20,000 $ 34,000 of 2 Accounts receivable, net 35,400 84,840 7,200 310,400 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 5,700 370,000 $ 515,940 $ 539,500 $ 68,340 84,800 210,000 Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory data $ 94,300 $ 29,800 $ 58,200 111,000 53,600 113,400 216,000 Total assets 418,000 372,500 152,800 118,200 Total liabilities and equity $ 515,940 $ 539,500 Common stock, $5 par value Retained earnings 210,000 216,000 137,425 93,229 53,400 134,500 income statement Sales Cost of goods sold Interest expense Income tax expense Net income. $ 790,000 $ 888,200 593,100 650,500 8,000 18,000 15,185 24,521 173,715 195,179 Basic earnings per share 4.14 4.52 3.77 3.94 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 () days' sales uncollected. Note: 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 1A Days Sal in 1A Rays Sal Incol Inv Turnover 1B short term For both companies compute the days' sales uncollected. (f) Company Numerator: Barco $ Kyan 35,400 / 1 Days' Sales Uncollected Denominator: x Days Days' Sales Uncollected x Days' sales uncollected x 11 0 days x = 0 days < 1A Days Sal in Inv 1B short term >