(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 Company Data from the current year-end balance sheets Company Company Data from the current year' Assets ncome statement Sales Cash $770,000 $ 21,000 $ 30,000 Cost of goods sold Accounts receivable, net 992,100 38,400 59,400 Interest expense 8,400 Current notes receivable (trade) 9.300 8.200 Income tax expense 14,800 Merchandise inventory 84,740 138,500 Net income 154,700 Prepaid expenses 5, 2007 ,700 Basic earnings per share 3.68 plant assets, net 310,000 308,400 Cash dividends per share C 3.77 Total assets $468,640 $552,200 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 27,800 Current liabilities $ 60,340 $ 93,300 Current notes receivable (trade) Long-term notes payable 84,800 101,000 Merchandise inventory 59,600 Common stock, $5 par value 210,000 216,000 Total assets 428,000 Retained earnings 113,500 141,900 Common stock, $5 par value 210,000 Total liabilities and equity $468, 640 $552,200 Retained earnings 117,140 HUMUUR following information applies to the questions displayed below.) nary information from the financial statements of two companies competing in the same industry Barco Kyan Company Company from the current year-end balance sheets Kyan Company Barco Company income statement $770,000 592,100 8,400 14,800 154.700 ounts receivable, net rent notes receivable (trade) chandise inventory paid expenses int assets, net al assets Data from the current year's Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share $ 21,000 $30,000 38,400 59,400 9,300 8,200 84,740 138,500 5,200 7,700 310,000 308,400 $468,640 $552,200 $901,200 638,500 19,000 24,879 218.821 5.07 3.96 3.77 $ 27,800 $ 56,200 bilities and Equity rent liabilities g-term notes payable mon stock, $5 par value ained earnings al liabilities and equity $ 60,340 $ 93,300 34.800 101.000 210,000 216,000 113,500 141,900 $468,640 $552,200 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, 35 par value Retained earnings 59,600 428.000 310,000 117,140 109,400 402.500 216,000 94,151 Check my wom Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $ 93,300 84,800 101,000 210,000 216,000 113,500 141,900 $468, 640 $552,200 Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings SS 423 310 112 Required: 1a. For both companies compute the(a) current ratio, (b) acid-test ratio, ( accounts (including notes) receivable turnover. 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 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 Sal in Inv 1A Days Sal Uncol Req 1B For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Choose Numerator: / Choose Denominator: = Accounts Receivable Turnover Net sales Average accounts receivable, net - Accounts receivable turnover IS 770,000 $ 33,100 = 23.3 times 0 times Kyan $ 901.2001 Barco Days' Sales Uncollected Choose Denominator: Company Choose Numerator: Days - Days' Sales Uncollected Days' sales uncollected 0 days 0 days Barco Kyan Required: 1a. For both companies compute the (a) current ratio. (b) acid-test ratio, (d accounts (including notes) receivable turnove 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 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 Sal in 1A Days Sal Uncol Req 1B Inv Identify the company you consider to be the better short-term credit risk. Better short-term credit risk