[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 $ 20,500 $35,000 Accounts receivable, net 39,400 85,040 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 5,900 7,350 320,000 313,400 $470,840 $ 547,650 $ 63,340 $ 101,300 84,800 101,000 170,000 income statement Sales 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 $ 800,000 $ 886,200 593,100 640,500 59,400 8,200 12,000 132,500 15,377 24,465 183,323 209,235 5.39 4.43 3.77 4.02 $ 26,800 $ 55,200 61,600 111,400 236,000 Total assets 152,700 109,350 $ 470,840 $ 547,650 Common stock, $5 par value Retained earnings 398,000 392,500 170,000 236,000 97,557 89,859 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 (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.