[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 Company Company Data from the current year-end balance sheets Assets Cash $ 18,000 $ 32,000 Accounts receivable, net 36,400 54,400 Current notes receivable (trade) 9,600 8,600 Merchandise inventory 84,540 138,500 Prepaid expenses 5,600 7,250 Plant assets, net 340,000 307,400 Total assets $494,140 $548,150 Barco Kyan Company Company Data from the current year's income statement Sales $780,000 $912,200 cost of goods sold 593,100 644.500 Interest expense 8,900 17,000 Income tax expense 14,992 25.183 Net income 163,008 225,517 Basic earnings per share 3.88 5.47 Cash dividends per share 3.76 3.96 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 101,300 80,800 115,000 210,000 206,000 137,000 125,850 $494, 140 $548,150 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 52,200 0 0 55,600 105.400 448,000 412,500 210,000 206.000 131,912 63,485 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be better short-term credit risk. For both companies compute the days' sales in inventory. (e) Company Days' Sales in Inventory Choose Denominator: X Cost of goods sold Days 365 - = Choose Numerator: Merchandise inventory $ 140,140 IS 105,400 1 Days' Sales in Inventory Days' sales in inventory 0 days 0 days Barco Kyan S 0 X X For both companies compute the days' sales uncollected. (f) Days' Sales Uncollected Company Choose Numerator: Choose Denominator: Current receivables. Net sales Barco 38,400 38,400 x Kyan 57,600 Days 365 365 net = = Days' Sales Uncollected Days' sales uncollected 365.0 days 0 days