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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	$	800,000	$	884,200
Cash	$	19,500	$	35,000		Cost of goods sold		591,100		630,500
Accounts receivable, net		36,400		52,400		Interest expense		8,800		18,000
Current notes receivable (trade)		9,500		7,600		Income tax expense		15,377		24,410
Merchandise inventory		84,440		128,500		Net income		184,723		211,290
Prepaid expenses		5,100		7,750		Basic earnings per share		4.86		4.89
Plant assets, net		290,000		305,400		Cash dividends per share		3.79		3.99
Total assets	$	444,940	$	536,650
						Beginning-of-year balance sheet data
Liabilities and Equity						Accounts receivable, net	$	25,800	$	57,200
Current liabilities	$	67,340	$	98,300		Current notes receivable (trade)		0		0
Long-term notes payable		80,800		103,000		Merchandise inventory		59,600		111,400
Common stock, $5 par value		190,000		216,000		Total assets		448,000		392,500
Retained earnings		106,800		119,350		Common stock, $5 par value		190,000		216,000
Total liabilities and equity	$	444,940	$	536,650		Retained earnings		66,097		80,428

Required:
1.1	For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected. (Do not round intermediate calculations.)

1.2	Identify the company you consider to be better in managing short-term credit risk.
	multiple choice Barco company Kyan company