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	$	790,000		$	913,200
Cash	$	19,500		$	36,000			Cost of goods sold		588,100			632,500
Accounts receivable, net		35,400			55,400			Interest expense		8,500			13,000
Merchandise inventory		84,840			138,500			Income tax expense		15,185			25,211
Prepaid expenses		5,600			7,400			Net income		178,215			242,489
Plant assets, net		340,000			308,400			Basic earnings per share		4.24			5.61
Total assets	$	485,340		$	545,700			Cash dividends per share		3.77			4.02
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	66,340		$	96,300			Accounts receivable, net	$	32,800		$	57,200
Long-term notes payable		79,800			113,000			Merchandise inventory		55,600			107,400
Common stock, $5 par value		210,000			216,000			Total assets		428,000			392,500
Retained earnings		129,200			120,400			Common stock, $5 par value		210,000			216,000
Total liabilities and equity	$	485,340		$	545,700			Retained earnings		109,325			51,575

Problem 13-5A (Algo) Part 1

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.