[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 Data from the current year's balance sheets Assets: Cash $ 20,000 Accounts receivable, net 39,400 Merchandise inventory 84,740 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 450,140 6,000 300,000 $ 67,340 84,800 170,000 128,000 52,400 132,500 7,200 310,400 $ 533,500 $ 94,300 113,000 216,000 Total liabilities and equity $ 450,140 110,200 $533,500 income statement Sales Cost of goods sold Interest expense Income tax expense Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net. Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,000 $ 800,000 595,100 $ 898,200 650,500 8,500 18,000 15,377 24,797 Net income 181,023 204,903 5.32 4.74 3.81 4.02 $ 30,800 $ 57,200 63,600 113,400 428,000 382,500 170,000 216,000 76,517 78,961 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 (5) 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. Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv 1B short term Uncol For both companies compute the current ratio. (a) Company Barco Kyan Numerator: Current Ratio Denominator: = Current Ratio Current ratio 0 to 1 0 to 1 IA Current Ratio Ratio 1A Acid Test 1A Acct Rec Turn 1A Invent Turnover For both companies compute the acid-test ratio. (b) Company Barco Kyan 1A Days Sal in 1A Days Sal 18 short term Inv Uncol Acid-Test Ratio Numerator: Denominator: Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Numerator: Barco Kyan Accounts Receivable Turnover. Denominator: Accounts Receivable Turnover. Accounts receivable turnover 0 times 0 times < 1A Acid Test Ratio 1A Invent Turnover > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 18 short term For both companies compute the inventory turnover. (d) Company Numerator: Barco Kyan Inventory Turnover Denominator: Inventory Turnover Inventory turnover 0 times 0 times Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover Inv 1A Days Sal in 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Numerator: Days' Sales in Inventory Barco Kyan Denominator: x Days Days' Sales in Inventory Days' sales in inventory 0 days 0 days Complete this question by entering your answers in the tabs below. 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn For both companies compute the days' sales uncollected. (f) Company Barco Kyan Numerator: Days' Sales Uncollected. Denominator: x Days Days' Sales Uncollected Days' sales uncollected 0 days O days < 1A Days Sal in Inv 1B short term > Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test Ratio Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sall 1B short term Inv Uncol Identify the company you consider to be the better short-term credit risk. Better short-term credit risk