Required:

1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (a) inventory turnover, (e) days' sales in inventory, and (f days' sales uncollected.

Note: Do not round intermediate calculations.

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. Required: 1a. For both companles compute the (a) current ratio, (b) acid-test ratio, (c) accounts recelvable turnover, ( d ) inventory turnover, ( ( ) 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. For both companies compute the current ratio. For both companies compute the acid-test ratio. For both companies compute the accounts (including notes) receivable turnover. For both companies compute the inventory turnover. For both companies compute the days' sales in inventory. For both companies compute the days' sales uncollected