Required information The following information apples 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 $ 19,500 $ 32,000 Accounts receivable, net 38,400 53,400 Merchandise inventory 84,840 134,500 Prepaid expenses 5,500 7,650 Plant assets, bet 140,000 304,400 Total assets $488,240 3531,950 Barco Kyan Company Company Data from the current year's income statement Sales $77.5922,200 Cost of goods sold 592.16 642 150 Interest expense 7. see 18,000 Income tax expense 14.500 25459 Net Income 155.300 236,241 Basic warnings per share 3.88 $.49 Cash dividends per share 3.78 Liabilities and Equity Current 11abilities Long-term notes payable Common stock 85 por value Retained earnings Total 11bilities and equity $ 65.340 $102,100 80,000 107,000 200.000 216.000 142,100 106.se $488.240 5551,950 Beginning of-year balance sheet data Accounts receivable, nel Merchandise Inventory Total assets Common stock, 35 par value Retaineering $ 29,000 5 51200 57,600 109,400 438.000 3725 200.000 216.000 138.000 4200 ch Required: ta For both companies compute the current ratio. (b) acid-test rouo, accounts receivable turnover Inventory turnover, ce days sales in inventory, and to 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 Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator. Current Ratio 1 Choose Denominator. 1 Current Ratio Current ratio Barco = = = to 1 Kyan to 1 1A Acid Test Ratio > LA Current IA Acid Test IA Acct Rec Turn 1A Invent Turnover 1A Days Salin Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio Company Choose Numerator: Choose Denominator Acid Test Ratio Acid-test ratio Barco Kyan - 101 1A Current Ratio 1A Acet Ree Turn > 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Tumover Choose Denominator. Accounts Receivable Turnover = Accounts receivable turnover times Barco 7 Kyan times 1A Current Ratio 1A Add Test Ratio 1A Acct Rec Turn 1A Invent 14 Days Salin 1A Days Sal Uncol 18 short term Turnover Inv For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days Sales in Inventory Choose Denominator * Days = Days Sales in Inventory = Days' sales in inventory = days days Barco Kyan XXX 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Salin Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. Days Sales Uncollected Choose Denominator: Company Choose Numerator: Days x Days Sales Uncollected = Days' sales uncollected days days Barco = XX Kyan 1A Days Sal in Inv 1B short term> 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk