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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	$ 892,200
Cash	$ 18,000	$ 32,000	Cost of goods sold	593,100	636,500
Accounts receivable, net	36,400	59,400	Interest expense	7,700	15,000
Merchandise inventory	84,440	136,500	Income tax expense	15,377	24,631
Prepaid expenses	5,600	7,050	Net income	183,823	216,069
Plant assets, net	350,000	310,400	Basic earnings per share	4.60	5.00
Total assets	$ 494,440	$ 545,350	Cash dividends per share	3.70	3.97
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 68,340	$ 92,300	Accounts receivable, net	$ 27,800	$ 51,200
Long-term notes payable	79,800	99,000	Merchandise inventory	55,600	111,400
Common stock, $5 par value	200,000	216,000	Total assets	448,000	402,500
Retained earnings	146,300	138,050	Common stock, $5 par value	200,000	216,000
Total liabilities and equity	$ 494,440	$ 545,350	Retained earnings	110,477	93,485

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.

(a)	Current Ratio
Company	Numerator:	/	Denominator:	=	Current Ratio
		/		=	Current ratio
Barco		/		=	0	to 1
Kyan		/		=	0	to 1

(b)	Acid-Test Ratio
Company	Numerator:						Denominator:	=	Acid-Test Ratio
		+		+		/		=	Acid-test ratio
Barco		+		+		/		=	0	to 1
Kyan		+		+		/			0	to 1

(c)	Accounts Receivable Turnover
Company	Numerator:	/	Denominator:	=	Accounts Receivable Turnover
		/		=	Accounts receivable turnover
Barco		/		=	0	times
Kyan		/		=	0	times