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	$ 810,000	$ 895,200
Cash	$ 22,500	$ 34,000	Cost of goods sold	595,100	634,500
Accounts receivable, net	37,400	50,400	Interest expense	7,800	18,000
Merchandise inventory	84,340	132,500	Income tax expense	15,569	24,714
Prepaid expenses	5,300	7,800	Net income	191,531	217,986
Plant assets, net	340,000	310,400	Basic earnings per share	4.56	5.05
Total assets	$ 489,540	$ 535,100	Cash dividends per share	3.78	3.95
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 63,340	$ 100,300	Accounts receivable, net	$ 30,800	$ 57,200
Long-term notes payable	81,800	111,000	Merchandise inventory	55,600	113,400
Common stock, $5 par value	210,000	216,000	Total assets	428,000	412,500
Retained earnings	134,400	107,800	Common stock, $5 par value	210,000	216,000
Total liabilities and equity	$ 489,540	$ 535,100	Retained earnings	101,629	60,454

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.

Required information [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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 22,500 $ 34,000 37,400 50,400 84,340 132,500 5,300 7,800 340,000 310,400 $ 489,540 $ 535, 100 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 810,000 595, 100 7,800 15,569 191,531 4.56 3.78 $ 895, 200 634,500 18,000 24,714 217,986 5.05 3.95 $ 63, 340 $ 100,300 81,800 111,000 210,000 216,000 134,400 107,800 $ 489,540 $ 535, 100 $ 30,800 55,600 428,000 210,000 101,629 $ 57,200 113,400 412,500 216,000 60, 454 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 (1 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 1A Days Sal Inv Uncol 1B short term For both companies compute the current ratio. (a) Current Ratio Denominator: Company Numerator: / = Current Ratio Current ratio to 1 Barco 1 Kyan = to 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 1 B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Numerator: Denominator: = Acid-Test Ratio Acid-test ratio + / Barco + +++ + + + / = to 1 Kyan + 1 to 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 Iny 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 1 Barco / = times Kyan / 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 days' sales in inventory. (e) Days' Sales in Inventory Company Numerator: / Denominator: X Days / = Days' Sales in Inventory Days' sales in inventory days Barco 1 = x x Kyan 1 = 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. (6) Days' Sales Uncollected Company Numerator: 1 Denominator: X Days = Days' Sales Uncollected Days' sales uncollected / = Barco 1 x x x days Kyan / = 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 1 B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk