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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	$ 770,000	$ 901,200
Cash	$ 22,000	$ 33,000	Cost of goods sold	587,100	638,500
Accounts receivable, net	39,400	59,400	Interest expense	8,800	14,000
Merchandise inventory	84,740	130,500	Income tax expense	14,800	24,879
Prepaid expenses	5,900	7,550	Net income	159,300	223,821
Plant assets, net	320,000	313,400	Basic earnings per share	4.42	5.71
Total assets	$ 472,040	$ 543,850	Cash dividends per share	3.73	3.98
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 60,340	$ 96,300	Accounts receivable, net	$ 30,800	$ 57,200
Long-term notes payable	85,800	107,000	Merchandise inventory	57,600	107,400
Common stock, $5 par value	180,000	196,000	Total assets	438,000	392,500
Retained earnings	145,900	144,550	Common stock, $5 par value	180,000	196,000
Total liabilities and equity	$ 472,040	$ 543,850	Retained earnings	120,880	76,745

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.

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. Identify the company you consider to be the better short-term credit risk