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Required information 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 $ 19,000 $ 32,000 Accounts receivable, net 38,400 57.400 Merchandise inventory 84,640 128.500 Prepaid expenses 5.2007 ,050 Plant assets, net 360,000 310,400 Total assets $507,240 $535,350 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $923,200 Cost of goods sold 595,100 642,500 Interest expense 8,700 10,000 Income tax expense 15,569 25,487 Net income 190,631 245, 213 Basie earnings per share 5.61 Cash dividends per share 3.73 3.95 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $ 95,300 82,800 105,000 170,000 216,000 185,100 119,050 $507,240 $535,350 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 32,800 $ 51,200 65,600 107.400 438,000 392,500 170,000 216,000 121,289 44.77 Required: 1a. For both companies compute the (current ratio. (b) acid-test ratio, accounts receivable turnover, (dinventory turnover, (e) days' sales in inventory, and (7 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. A Days Salin 1A Current Ratio 1A Invent Turnover s A Days Sal Uncol hort ter A Acid Test1A Acct Rec Ratio Turn For both companies compute the current ratio

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