Required: 1o. For both companies compute the (a) current ratio, (b) acid test ratio, ( accounts receivable turnover (inventory turnover (@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 Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770, $882,200 Cash $ 19,500 $ 31,00 Cost of goods sold 592,100 650.500 Accounts receivable, net 36,40 57,400 Interest expense 8,400 16,000 Merchandise Inventory 84,240 134,500 Income tax expense 14,800 24 355 Prepaid expenses 5.600 7.200 Net Income 154,700 191,345 plant assets, set 310.000 300,400 Basic earnings per share 3.52 1.89 Total assets $455,740 5538,500 Cash dividends per share 3.77 Liabilities and Equity Beginning of year lance sheet data Current liabilities $ 60,140 $ 99, 300 Accounts receivable, net $ 28,800 $ 57,200 Long term notes payable 79,000 101,000 Merchandise Inventory 59,600 107,400 Common stock. $5 par value 220,000 246.000 Total assets 378,000 392500 Retained earnings 87,600 92,200 Common stock, 35 par value 220,000 246,000 Total Habilities and equity 5455,740 5530,500 Retained earnings 98,78e 97 163