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For both companies compute the inventory turnover. begin{tabular}{|c|c|c|c|c|c|c|c|} hline (f) & multicolumn{7}{|c|}{ Days' Sales Uncollected } hline Company & Numerator: & I & Denominator:
For both companies compute the inventory turnover. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline (f) & \multicolumn{7}{|c|}{ Days' Sales Uncollected } \\ \hline Company & Numerator: & I & Denominator: & x & Days & = & Days' Sales Uncollected \\ \hline & & I & & x & & = & Days' sales uncollected \\ \hline Barco & & I & & x & & = & days \\ \hline Kyan & & l & & x & & = & days \\ \hline \end{tabular} For both companies compute the acid-test ratio. Required: la. 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. Note: Do not round intermediate calculations. 1b. Identify the company you consider to be the better short-term credit risk. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{|c|} (e) \\ Company \end{tabular}} & \multicolumn{7}{|c|}{ Days' Sales in Inventory. } \\ \hline & Numerator: & I & Denominator: & x & Days & = & Days' Sales in Inventory \\ \hline & & 1 & & x & & = & Days' sales in inventory \\ \hline Barco & & 1 & & x & & = & days \\ \hline Kyan & & 1 & & x & & = & days \\ \hline \end{tabular}
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