Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company Data from the current year's income statement Sales Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets $770,000 $907,200 588,100 | 630,500 8,500 16,000 14,800 25,045 158,600 235,655 5.45 3.93 $ 18,500 37,000 Cost of goods sold 36,400 60,400 Interest expense 9,800 8,200 Income tax expense 84,840 134,500 Net income 5,800 7,100 Basic earnings per share 3.60 3.74 350,000 305,400 Cash dividends per share $505,340 $552,600 Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 |s 51,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 67,340 $103,300 Current notes receivable (trade) 83,800 105,000 Merchandise inventory 220,000 216,000 Total assets 134,200128,300 Common stock, $5 par value 63,600 107,400 438,000 412,500 220,000 216,000 140,160 62,421 $505,340 $552, 600 Retained earnings Total liabilities and equity 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 (n 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 A Days SalReq 18 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1 Ratio Ratio Turn Turnover Inv Uncol For both companies compute the current ratio. Current Ratio Company Choose Numerator: I Choose Denominator - Current Ratio Current ratio to 1 to 1 Barco Kyan 1A Acid Test Ratio> 1A Current Ratio For both companies compute the acid-test ratio. Acid-Test Ratio Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Barco to 1 to 1 Kyan For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover Company Choose Numerator: /Choose Denominator: - Accounts Receivable Turnover -Accounts receivable turnover Barco times Kyan imes 1A Acct Rec Turn For both companies compute the inventory turnover. Inventory Turnover Choose Denominator: Company Choose Numerator: -Inventory Turnover - Inventory turnover Barco times Kyan times 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Req 1B Ratio Ratio Uncol Turn Turnover Inv For both companies compute the days' sales in inventory. Days' Sales in Inventory Company Choose Numerator Choose Denominator: x Days Days' Sales in Inventory -Days' sales in inventory Barco days days Kyan 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in1A Days Sal Req 1B Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. Days' Sales Uncollected CompanyChoose Numerator: Choose Denominator: x DaysDays' Sales Uncollected Days' sales uncollected Barco days days Kyan Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test1A Acct Rec 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol Req 18 Ratio Ratio Turn Identify the company you consider to be the better short-term credit risk. Better short-term credit risk