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	$ 887,200
Cash	$ 20,000	$ 33,000	Cost of goods sold	587,100	642,500
Accounts receivable, net	39,400	56,400	Interest expense	8,400	13,000
Merchandise inventory	84,340	130,500	Income tax expense	15,377	24,493
Prepaid expenses	5,200	7,050	Net income	189,123	207,207
Plant assets, net	350,000	312,400	Basic earnings per share	4.50	4.58
Total assets	$ 498,940	$ 539,350	Cash dividends per share	3.79	3.97
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 65,340	$ 95,300	Accounts receivable, net	$ 31,800	$ 54,200
Long-term notes payable	84,800	103,000	Merchandise inventory	65,600	117,400
Common stock, $5 par value	210,000	226,000	Total assets	388,000	402,500
Retained earnings	138,800	115,050	Common stock, $5 par value	210,000	226,000
Total liabilities and equity	$ 498,940	$ 539,350	Retained earnings	108,857	87,287

Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) da sales in inventory, and ( days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio Current Ratio (a) Company Numerator: 1 Denominator: Il Current Ratio / = 11 Current ratio Barco / II = oto 1 0 to 1 Kyan 1 = Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Numerator: Denominator: Acid-Test Ratio + + / Acid-test ratio Barco + + 1 0 to 1 Kyan + + / 0 to 1 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Numerator: Denominator: = = Accounts Receivable Turnover Accounts receivable turnover 0 times Barco 1 = Kyan / II = 0 times Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Numerator: 1 Denominator: = Inventory Turnover Inventory turnover / Barco 1 = 0 times Kyan / 0 times 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Days' Sales in Inventory Denominator: Numerator: / X Days Days' Sales in Inventory Days' sales in inventory 1 II Barco / x II 0 days Kyan / Il = 0 days Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. (f) Company Days' Sales Uncollected Denominator: * Days Numerator: / II Days' Sales Uncollected Days' sales uncollected 1 = Barco 1 II 0 days Kyan / = 0 days