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The following information applies to the questions displayed below.j Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barco Kvan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current vear 's income statement Sales $810,000 $911,200 586,100 644,500 18,000 15,569 25,155 199,131 223,545 4-74 3.96 $ 22,000 30,000 Cost of goods sold 52,400 Interest expense 34,400 9,200 9,200 8,400 Income tax expense 84,440 136,500 Net income 5,900 7,600 Basic earnings per share 5.53 3.72 320,000 308,400 Cash dividends per share $475,940 $543,300 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, Retained earnings $ 28,800 51,200 69,340 $102,300 Current notes receivable (trade) 79,800 103,000 Merchandise inventory 180,000 236,000 Total assets 146, 800 102, 000 Common stock, $5 par value 63,600 107,400 438,000 422,500 180,000 236,000 65,367 $5 par value $475,940 543,300 Retained earnings Total liabilities and equity 81,589 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, () accounts (including notes) receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and ( 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 1A Acid Test1A Acct Rec1A Invent 1A Days Sal in 1A Days Sal Req 1B Uncol Ratio Ratio Turn Turnover Inv For both companies compute the accounts (including notes) receivable turnover Accounts Receivable Turnover Company Choose Numerator: Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover O times 0 times Barco Kyan

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