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Required information Skip to question [ The following information applies to the questions displayed below. ] Summary information from the financial statements of two companies

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[The following information applies to the questions displayed below.]
Summary information from the financial statements of two companies competing in the same industry follows.
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 $ 909,200
Cash $ 20,000 $ 32,000 Cost of goods sold 595,100632,500
Accounts receivable, net 39,40060,400 Interest expense 8,40015,000
Merchandise inventory 84,540132,500 Income tax expense 15,18525,100
Prepaid expenses 5,3007,700 Net income 171,315236,600
Plant assets, net 300,000308,400 Basic earnings per share 4.765.23
Total assets $ 449,240 $ 541,000 Cash dividends per share 3.724.00
Liabilities and Equity Beginning-of-year balance sheet data
Current liabilities $ 70,340 $ 99,300 Accounts receivable, net $ 28,800 $ 53,200
Long-term notes payable 80,800105,000 Merchandise inventory 57,600107,400
Common stock, $5 par value 180,000226,000 Total assets 448,000402,500
Retained earnings 118,100110,700 Common stock, $5 par value 180,000226,000
Total liabilities and equity $ 449,240 $ 541,000 Retained earnings 80,70554,900
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.
Note: Do not round intermediate calculations.
1b. Identify the company you consider to be the better short-term credit risk.

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