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 $ 18,000 $ 36,000 Accounts receivable, net 38,400 53,400 Merchandise inventory 84,640 132,500 Prepaid expenses 5,300 7,300 Plant assets, net 300,000 309,400 Total assets $ 446,340 $538,600 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $921,200 Cost of goods sold 585,100 638,1500 Interest expense 8,600 18,000 Income tax expense 14,608 25,1432 Net income 151,692 239,268 Basic earnings per share 3.61 5.81 Cash dividends per share 3.78 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 96,300 81,800 105,000 210,000 206,000 85,200 131,300 $ 446,340 $538,600 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 53,/200 55,600 109,400 428,000 422,500 210,000 206,000 92,268 56,420 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. 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: | Choose Denominator: Current Ratio = Current ratio / / Barco 0 to 1 Kyan 0 to 1 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. (d) Inventory Turnover Company Choose Numerator: Choose Denominator: Inventory Turnover Inventory turnover = Barco 1 0 times Kyan 0 times 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1 B short term For both companies compute the days' sales in inventory. Days' Sales in Inventory. (e) Company Choose Numerator: | Choose Denominator: Days = Days' Sales in Inventory = Days' sales in inventory X Barco 0 days 0 days Kyan =