[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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $ 760,000 $ 890,200 Cash $ 19,000 $ 35,000 Cost of goods sold Accounts receivable, net 34,400 Merchandise inventory 84,940 Prepaid expenses Plant assets, net 5,900 300,000 Current liabilities Total assets Liabilities and Equity Long-term notes payable Common stock, $5 par value Retained earnings $ 444,240 $ 538,100 $ 60,340 83,800 200,000 100,100 $ 96,300 115,000 206,000 Total assets 120,800 Total liabilities and equity $ 444,240 $ 538,100 56,400 130,500 7,800 308,400 Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Common stock, $5 par value Retained earnings 592,100 8,000 642,500 10,000 14,608 24,576 145,292 213,124 3.63 3.79 5.17 3.92 $ 25,800 $ 52,200 61,600 111,400 408,000 372,500 200,000 206,000 106,408 69,180 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 (f) days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk.