[The following information applies to the questions displayed below] Summary information from the financial statements of two companies competing in the same industry follows. Data from the current year-end Barco Company Kyan Company balance sheets Data from the current year's Barco Company Kyan Company income statenent Assets Cash Accounts receivable, net 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 40,400 84,640 6,000 330,000 $ 483,040 $ 541,900. Sales $760,000 $ 912,200 $ 22,000 $ 35,000 Cost of goods sold 591,100 634,500 54,400 Interest expense 7,800 12,000 134,500 Income tax expense 14,608 25,183 7,600 Net income 146,492 240,517 310,400 Basic earnings per share 4.31 5.84 Cash dividends per share 3.71 3.96 Beginning-of-year balance sheet data $ 61,340 $ 99,300 80,800 170,000 Accounts receivable, net $ 28,800 $ 57,200 107,000 Merchandise inventory 63,600 113,400 206,000 Total assets. 398,000 402,500 170,900 129,600 $ 483,040 $541,900 Common stock, $5 par value Retained earnings 170,000 206,000 150,548 52,235 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.