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 $ 19,500 $ 31,000 Accounts receivable, net 34,400 54,400 Merchandise inventory 84,940 130,500 Prepaid expenses 5,800 7,000 Plant assets, net 330,000 306,400 Total assets $474,640 $529,300 Barco Kyan Company Company Data from the current year's income statement Sales $780,000 $898, 200 Cost of goods sold 586,100 648,500 Interest expense 9,200 13,000 Income tax expense 14,992 24.797 Net income 169,708 211,903 Basic earnings per share 4.99 5.41 Cash dividends per share 3.82 3.97 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $ 103,300 85,800 115,000 170,000 196,000 154,500 115,000 $474,640 $529, 300 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 51,200 63,600 109,400 458,000 372,500 170,000 196,000 114,672 58.721 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. (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 Turnover 1 A Days Sal in Inv 1A Days Sal Uncol 13 short term For both companies compute the current ratio. (a) Current Ratio 1 Choose Denominator: Company Choose Numerator: = Current Ratio = Current ratio 0 to 1 0 to 1 Barco Kyan 1A Current Ratio 1A Acid Test Ratio > 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 (7 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. 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 = Acid-test ratio 0 to 1 Barco 11 Kyan 0 to 1 1A Current Ratio 1A Acct Rec Tum > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio 1A Acct Rec 1A Invent 1A Days Sal in Inv 1A Days Sal 13 short term Uncol Ratio Turn Turnover For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: = Accounts Receivable Turnover = Accounts receivable turnover 0 times Barco Kyan 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 1A Days Sal Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover 7 Choose Denominator: Company Choose Numerator: = Inventory Turnover Inventory turnover 0 times 0 times Barco Kyan 1A Acct Rec Turn 1A Days Sal in Inv > Complete this question by entering your answers in the tabs below. 1 A Days Sal in 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal Inv 13 short term Uncol For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: x Days = Days' Sales in Inventory = Days' sales in inventory 0 days 0 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 Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. Days' Sales Uncollected 1 Choose Denominator: CompanyChoose Numerator: x Days = Days' Sales Uncollected = Days' sales uncollected 0 days 0 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 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 Barco company