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 $ 18,500 $ 33,000 Accounts receivable, net 37,400 58,400 Merchandise inventory 84,240 138,500 Prepaid expenses 6,200 7,000 Plant assets, net 320,000 304,400 Total assets $466,340 $541,300 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $904,200 Cost of goods sold 588,100 650,500 Interest expense 9,200 11,000 Income tax expense 14,800 24,962 Net income 157,900 217,738 Basic earnings per share 4.64 4.43 Cash dividends per share 3.76 3.97 | Beginning-of-year balance sheet data Accounts receivable, net $ 27,800 $ 58,200 Merchandise inventory 63,600 107,400 Total assets 428,000 392,500 Common stock, $5 par value 170,000 246,000 Retained earnings 115, 140 72,586 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 68, 340 $ 91,300 82,800 109,000 170,000 246,000 145, 200 95,000 $466,340 $541,300 For both companies compute the current ratio. Current Ratio (a) Company Choose Numerator: | Choose Denominator: = Current Ratio = Current ratio Barco 0 to 1 Kyan = II 0 to 1 For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: Choose Denominator: = Acid-Test Ratio + + = Acid-test ratio Barco + + 0 to 1 Kyan + + I 0 to 1 For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: 1 Choose Denominator: = Accounts Receivable Turnover = Accounts receivable turnover Barco = 0 times Kyan = 0 times For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Numerator: | Choose Denominator: II = Inventory Turnover Inventory turnover II Barco 0 times Kyan = 0 times For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory. | Choose Denominator: I Days X = Days' Sales in Inventory = Days' sales in inventory 0 days Barco X II Kyan 1 = 0 days For both companies compute the days' sales uncollected. Days' Sales Uncollected (f) CompanyChoose Numerator: 1 Choose Denominator: Days = Days' Sales Uncollected Days' sales uncollected X = Barco / x 11 0 days Kyan = 0 days Identify the company you consider to be the better short-term credit risk. Better short-term credit risk