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[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

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[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 Kyan Barco Kyan Company Company Company Company Data from the current year- Data from the current year's end balance sheets income statement Assets Sales $ 790,000 $928,200 Cash $ 18,000 $ 34,000 Cost of goods sold 591, 100 640,500 Accounts receivable, net 38,400 58,400 Interest expense 9,100 12,000 Merchandise inventory 84,640 130,500 Income tax expense 15,185 25,625 Prepaid expenses 5,300 6,95 Net income 174,615 250,075 Plant assets, net 340,000 313,400 Basic earnings per share 4.37 5.79 Total assets $ 486,340 $ 543,250 Cash dividends per share 3.70 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,340 $ 100,300 Accounts receivable, net $ 39,800 $ 51,200 Long-term notes payable 84,800 107,000 Merchandise inventory 59,600 109,400 Common stock, $5 par value 200,000 216,000 Total assets 388,000 382,500 Retained earnings 136,200 119,950 Common stock, $5 par value 200,000 216,000 Total liabilities and equity $ 486,340 $ 543,250 Retained earnings 109,585 43, 107 Required: 1a. For both companies compute the (6) current ratio, (b) acid-test rotlo, ( accounts receivable turnover, (a) inventory turnover, (e) days' sales in inventory, and (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 Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin 1A Days Sal Iny Uncol 1B short term For both companies compute the current ratio. (a) Company Numerator Current Ratio Denominator: Current Ratio Current ratio tot to 1 Barco Kyan A CAMA 1A Acid Test Ratio >

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