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	$	790,000		$	881,200
Cash	$	20,500		$	35,000			Cost of goods sold		592,100			642,500
Accounts receivable, net		36,400			59,400			Interest expense		7,500			10,000
Merchandise inventory		84,740			140,500			Income tax expense		15,185			24,327
Prepaid expenses		6,100			7,150			Net income		175,215			204,373
Plant assets, net		360,000			305,400			Basic earnings per share		5.48			5.21
Total assets	$	507,740		$	547,450			Cash dividends per share		3.81			3.93
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	66,340		$	93,300			Accounts receivable, net	$	26,800		$	55,200
Long-term notes payable		83,800			115,000			Merchandise inventory		65,600			105,400
Common stock, $5 par value		160,000			196,000			Total assets		448,000			402,500
Retained earnings		197,600			143,150			Common stock, $5 par value		160,000			196,000
Total liabilities and equity	$	507,740		$	547,450			Retained earnings		144,305			92,833

Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.