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	$ 898,200
Cash	$ 20,500	$ 36,000	Cost of goods sold	591,100	652,500
Accounts receivable, net	39,400	55,400	Interest expense	8,400	16,000
Merchandise inventory	84,840	134,500	Income tax expense	15,377	24,797
Prepaid expenses	6,000	7,250	Net income	185,123	204,903
Plant assets, net	340,000	306,400	Basic earnings per share	5.44	4.74
Total assets	$ 490,740	$ 539,550	Cash dividends per share	3.81	3.92
Liabilities and Equity			Beginning-of-year balance sheet data
Current liabilities	$ 60,340	$ 100,300	Accounts receivable, net	$ 30,800	$ 56,200
Long-term notes payable	78,800	113,000	Merchandise inventory	61,600	107,400
Common stock, $5 par value	170,000	216,000	Total assets	428,000	412,500
Retained earnings	181,600	110,250	Common stock, $5 par value	170,000	216,000
Total liabilities and equity	$ 490,740	$ 539,550	Retained earnings	126,017	74,691

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.

Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the current ratio. (a) Company Numerator: Current assets Barco Kyan Current Ratio 1 Denominator: 1 Current liabilities 1 = Current Ratio Current ratio 0 to 1 0 to 1 1A Current Ratio 1A Acid Test Ratio > Tum LA Current 14 Add Test 14 act Rec Invent 1 Das Salin LA Dorsal Ratio Tumover unced 18 short am For both companies compute the acid-bast ratio Acid. Test Ratio Camper Numerator: Denominator Short-term iets Cursurt recibles Barretto Barce 1 1 Acid-Test Ratio kzed-aut: rustic 601 0001 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. 1 Accounts Receivable Turnover Denominator: End of year accounts receivable (c) Company Numerator: Net sales Barco Kyan II = Accounts Receivable Turnover Accounts receivable turnover 0 times 1 / = 0 times Complete this question by entering your answers in the tabs below. 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn 1A Invent 1A Days Sal in 1A Days Sal Turnover Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Company Numerator: Cost of goods sold Barco Inventory Turnover 1 Denominator: / End of year total inventory = II Inventory Turnover Inventory turnover 0 times 11 Kyan = 0 times 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 (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 days' sales in inventory. (e) Company Days' Sales in Inventory Denominator: Numerator: 1 x Days = = Days' Sales in Inventory Days' sales in inventory 0 days 0 days Barco xxx = 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 1A Days Sal Inv Uncol 1B short term For both companies compute the days' sales uncollected. (1) Days' Sales Uncollected Company Numerator: 1 Denominator: X Days = Days' Sales Uncollected Days' sales uncollected 0 days Barco ! = Kyan = 0 days