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 $ 21,500 $ 31,000 Accounts receivable, net 39,400 58,400 Merchandise inventory 84,640 140,500 Prepaid expenses 5,300 7,650 Plant assets, net 320,000 311,400 Total assets $470,840 $548,950 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $923, 200 Cost of goods sold 584,100 632,500 Interest expense 8,100 16,000 Income tax expense 15,569 25,487 Net income 202,231 249, 213 Basic earnings per share 4.82 5.51 Cash dividends per share 3.79 3.96 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 67,340 $103,300 84,800 103,000 210,000 226,000 108,700 116,650 $470, 840 $548,950 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 32,800 $ 52,200 63,600 115,400 398,000 362,500 210,000 226,000 65,649 46, 429 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 1A Days Sal in Iny 1A Days Sal Uncol 1B short term For both companies compute the current ratio. Current Ratio (a) Company Choose Numerator: 1 Choose Denominator: = Current Ratio 1 Current ratio Barco 1 0 to 1 Kyan 1 0 to 1 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price- earnings ratios and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot 2A Ret On Com 2A Price Earn Assets Stock Ratio 2A Div Yield Reg 2B For both companies compute the profit margin ratio. Profit Margin Ratio (a) Company Choose Numerator: / Choose Denominator: 1 Profit margin ratio Profit margin ratio 0 % Barco / Kyan / 0 % 2A Prof Mar Ratio 2A Tot Asset Turn