Summary information from the financial statements of two companies competing in the same industry follows.

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.

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 $ 19,500 36,400 84,340 6,000 360,000 $ 506,240 $ 32,000 55,400 134,500 7,350 304,400 533,650 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 $ 790,000 $ 902,200 583,100 634,500 9,000 14,000 15,185 24,907 182,715 228,793 4.81 | 5.55 3.72 4.01 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66,340 $ 97,300 83,800 107,000 190,000 206,000 166,100 123,350 $ 506,240 $ 533,650 $ 31,800 61,600 428,000 190,000 124,745 $ 58,200 115,400 412,500 206,000 59,769 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 current ratio. (a) Current Ratio 1 Denominator: P Company Numerator: Current assets Current Ratio Current ratio 1 Current liabilities = Barco 1 = to 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 Iny 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 = = oto 1 Kyan + + 1 0 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 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Accounts Receivable Turnover Company Numerator: 1 Denominator: Accounts Receivable Turnover = Accounts receivable turnover Barco = 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 inventory turnover. (d) Inventory Turnover Company Numerator: 1 Denominator: Inventory Turnover Inventory turnover 1 II Barco 1 Il 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 1 B short term For both companies compute the days' sales in inventory. Days' Sales in Inventory. (e) Company Numerator: 1 Denominator: * X Days / x II Days' Sales in Inventory Days' sales in inventory 0 days 0 days Barco Kyan 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 days' sales uncollected. Days' Sales Uncollected (f) Company Numerator: 1 Denominator: X Days = = Days' Sales Uncollected = Days' sales uncollected Barco 1 0 days Kyan x 0 days 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 Identify the company you consider to be the better short-term credit risk. Better short-term credit risk