Barco Company			Kyan Company					Barco Company			Kyan Company
Data from the current year-end balance sheets								Data from the current years income statement
Assets								Sales	$	780,000		$	900,200
Cash	$	19,500		$	37,000			Cost of goods sold		587,100			642,500
Accounts receivable, net		34,400			54,400			Interest expense		8,900			16,000
Merchandise inventory		84,740			130,500			Income tax expense		14,992			24,852
Prepaid expenses		6,000			7,000			Net income		169,008			216,848
Plant assets, net		310,000			313,400			Basic earnings per share		4.97			4.41
Total assets	$	454,640		$	542,300			Cash dividends per share		3.78			3.94
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	62,340		$	97,300			Accounts receivable, net	$	28,800		$	52,200
Long-term notes payable		79,800			101,000			Merchandise inventory		59,600			111,400
Common stock, $5 par value		170,000			246,000			Total assets		388,000			372,500
Retained earnings		142,500			98,000			Common stock, $5 par value		170,000			246,000
Total liabilities and equity	$	454,640		$	542,300			Retained earnings		102,012			75,000

For both companies compute the current ratio.

(a)	Current Ratio
Company	Choose Numerator:	/	Choose Denominator:	=	Current Ratio
		/		=	Current ratio
Barco		/		=	0	to 1
Kyan		/		=	0	to 1

For both companies compute the acid-test ratio.

(b)	Acid-Test Ratio
Company	Choose Numerator:						Choose Denominator:	=	Acid-Test Ratio
		+		+		/		=	Acid-test ratio
Barco		+		+		/		=	0	to 1
Kyan		+		+		/			0	to 1

For both companies compute the accounts (including notes) receivable turnover.

(c)	Accounts Receivable Turnover
Company	Choose Numerator:	/	Choose Denominator:	=	Accounts Receivable Turnover
		/		=	Accounts receivable turnover
Barco		/		=	0	times
Kyan		/		=	0	times

For both companies compute the inventory turnover.

(d)	Inventory Turnover
Company	Choose Numerator:	/	Choose Denominator:	=	Inventory Turnover
		/		=	Inventory turnover
Barco		/		=	0	times
Kyan		/		=	0	times

For both companies compute the days' sales in inventory.

(e)	Days Sales in Inventory
Company	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days Sales in Inventory
		/		x		=	Days sales in inventory
Barco		/		x		=	0	days
Kyan		/		x		=	0	days

For both companies compute the days' sales uncollected.

(f)	Days' Sales Uncollected
Company	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days' Sales Uncollected
		/		x		=	Days' sales uncollected
Barco		/		x		=	0	days
Kyan		/		x		=	0	days

Better short-term credit risk