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 Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net $20,000 $ 38,000 38,400 53,400 9,100 8,000 84,740 134.500 6,000 7,050 330,000 305,400 Barco Kyan Company Company Data from the current year's income statement Sales $ 770.000 $ 888,200 Cost of goods sold 586,100 632,500 Interest expense 7,800 16,000 Income tax expense 14,800 24.521 Net income 161,300 215,179 Basic earnings per share 424 5.22 Total assets 488,240 546,350 Liabilities and Equity Current liabilities $63,340 $ 95,300 Long-term notes payable 85.800 107.000 Common stock. 55 par 190,000 206,000 value Retained earnings 149.100 138,050 Beginning-of-year balance sheet data Accounts receivable, net 5 28,800 S 53 200 Current notes receivable 0 0 (trade) Merchandise inventory 55,600 115.400 Total assets 418,000 392,500 Common stock, SS par 206,000 value 190,000 Total liabilities and equity S 488240 $ 546,350 Retained earnings 97300 94.600 Required: 1.1 For both companies compute the (a) current ratio, by acid-test ratio, 1 accounts (including notes) receivable turnover. (d) inventory turnover tey days' sales in Inventory, and days' sales uncollected (Use 365 days a year. Do not round intermediate calculations.) Company Choose Numerator Current Ratio Choose Denominator Current Ratio Current Ratio oto 1 Harco 7 Kyan Oto 1 Days' Sales in Inventory Choose Denominator: Company Choose Numerator: Days Days' Sales in Inventory X X Days' Sales in Inventory 0 days 0 days Barco 11 Kyan Days Sales Uncollected 1 Choose Denominator: Company Choose Numerator: X Days X Days! Sales Uncollected Days' Sales Uncollected o days 0 days 1 X Barco Kyan 1.2 Identity the company you consider to be better in managing short-term credit risk. OKyon company O Barco company 2.1 For both companies compute the (a) profit margin ratio. (b) total asset turnover, (9 return on total assets, and (d) return on common stockholders' equity. Assuming that each company paid cash dividends of $4.40 per share and each company's stock can be purchased at $100 per share, compute their (el price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Margin Ratio Company Choose Numerator Choose Denominator: Profit margin ratio Profit margin ratio 0 % 096 Barco Kyan Company Choose Numeraton Total Assemover Choose Denominator: 1 Total Asset Turnover Total Asset Turnover O times O times Barco Kyan 1 NA Return on Total Assets Kyan Return On Common Stockhodes E Company Choose Numerator: Choose Denomic Return On Common Stockholders' Equity Return On Common Stockholders' Equity ol Barco Kyan 0 Company Piceno Choose Denomis Choose Neator Pos Rato Pro Earnings Ratio 0 Barco Kyan Company Choose e Denominator - De Didendal Barco Kyan Hoa 1 22 Identity which company's Mock you would recommend as the benement Mon company Barco company