Summary information from the financial statements of two companies competing in the same industry follows. Barco...

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Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end Barco Company Kyan Company balance sheets Data from the current year's income statement Assets Merchandise inventory Prepaid expenses Cash $ 21,500 $ 36,000 Accounts receivable, net 38,400 84,340 Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable. Common stock, $5 par value Retained earnings 85,800 170,000 113,000 $ 430,140 $ 61,340 $ 90,300 107,000 226,000 Total assets 115,550 Total liabilities and equity $ 430,140 $ 538,850 Common stock, $5 par value. Retained earnings 5,900 280,000 53,400 138,500 7,550 303,400 $ 538,850 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 $ 888,200 589,100 9,200 644,500 16,000 15,377 24,521 186,323 203,179 5.48 4.50 3.74 3.96 $ 29,800 $ 54,200 55,600 111,400 448,000 382,500 170,000 226,000 53,837 91,363 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 (f) days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Data from the current year-end Barco Company Kyan Company balance sheets Data from the current year's income statement Assets Merchandise inventory Prepaid expenses Cash $ 21,500 $ 36,000 Accounts receivable, net 38,400 84,340 Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable. Common stock, $5 par value Retained earnings 85,800 170,000 113,000 $ 430,140 $ 61,340 $ 90,300 107,000 226,000 Total assets 115,550 Total liabilities and equity $ 430,140 $ 538,850 Common stock, $5 par value. Retained earnings 5,900 280,000 53,400 138,500 7,550 303,400 $ 538,850 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 $ 888,200 589,100 9,200 644,500 16,000 15,377 24,521 186,323 203,179 5.48 4.50 3.74 3.96 $ 29,800 $ 54,200 55,600 111,400 448,000 382,500 170,000 226,000 53,837 91,363 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 (f) days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk.