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(The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco

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(The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barca Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's Income statement Assets Sales $890,000 5910,200 Cash $ 19,000 $ 32,000 Cost of goods sold $96,100 630, 500 Accounts receivable, net 40,400 51,400 Interest expense 7,600 15,000 Merchandise inventory 84,540 130,500 Income tax expense 15,377 25.128 Prepaid expenses 5,700 7.600 Net Income 180,923 239,572 plant assets, net 350,000 395,400 Basic earnings per share 4.11 Total assets $499,640 3526,900 Cash dividends per share 1.35 Liabilities and Equity Current liabilities Long-tern note payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 62,340 $ 97,300 Accounts receivable, net 85,190 113,000 Merchandise inventory 200,000 195.000 Total assets 151500 120.6) Common stock, 55 por value $499,640 $526,900 Retained earnings $ 28,800 5.5.200 57,600 105,400 438,000 407,500 200,000 196,000 121,777 35,868 Required: 1o. For both companies compute the current ratio, (b) acid-test ratio, (accounts receivable turnover (o inventory turnover (el days Sales in inventory, and (6 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identity the company you consider to be the better short-term credit risk

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