[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 Total assets Prepaid expenses Plant assets, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 5,000 290,000 132,500 304,400 $ 445,440 $ 542,450 $ 61,340 80,800 180,000 123,300 $ 93,300 101,000 206,000 Total assets 142,150 Total liabilities and equity $ 445,440 $ 542,450 Common stock, $5 par value Retained earnings 6,950 Cost of goods sold 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 $ 770,000 585,100 7,900 $ 880,200 632,500 13,000 14,800 24,300 162,200 210,400 4.51 5.11 3.81 3.93 $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 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. (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 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal 1B short term Turnover For both companies compute the current ratio. Inv Uncol (a) Company Numerator: Current assets Barco Kyan $ Current Ratio Denominator: = Current Ratio Current liabilities = Current ratio S 0 S 61,340 = 93,300 to 1 = to 11 < 1A Current Ratio 1A Acid Test Ratio >