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[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

[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 Data from the current years income statement Assets Sales $ 790,000 $ 919,200 Cash $ 19,500 $ 31,000 Cost of goods sold 586,100 634,500 Accounts receivable, net 39,400 55,400 Interest expense 7,700 15,000 Current notes receivable (trade) 9,900 8,200 Income tax expense 15,185 25,376 Merchandise inventory 84,940 142,500 Net income 181,015 244,324 Prepaid expenses 6,100 7,700 Basic earnings per share 5.32 5.93 Plant assets, net 350,000 306,400 Total assets $ 509,840 $ 551,200 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 28,800 $ 55,200 Current liabilities $ 64,340 $ 104,300 Current notes receivable (trade) 0 0 Long-term notes payable 86,800 101,000 Merchandise inventory 63,600 105,400 Common stock, $5 par value 170,000 206,000 Total assets 418,000 412,500 Retained earnings 188,700 139,900 Common stock, $5 par value 170,000 206,000 Total liabilities and equity $ 509,840 $ 551,200 Retained earnings 100,300 92,600 1. Required information Required: 1.1 For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected. (Use 365 days a year. Do not round intermediate calculations.)

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