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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	$	915,200
Cash	$	21,500	$	32,000		Cost of goods sold		591,100		632,500
Accounts receivable, net		39,400		53,400		Interest expense		8,800		16,000
Current notes receivable (trade)		9,100		8,200		Income tax expense		15,377		25,266
Merchandise inventory		84,240		140,500		Net income		184,723		241,434
Prepaid expenses		5,600		7,000		Basic earnings per share		5.13		5.59
Plant assets, net		340,000		307,400		Cash dividends per share		3.80		3.99
Total assets	$	499,840	$	548,500
						Beginning-of-year balance sheet data
Liabilities and Equity						Accounts receivable, net	$	28,800	$	58,200
Current liabilities	$	66,340	$	100,300		Current notes receivable (trade)		0		0
Long-term notes payable		80,800		105,000		Merchandise inventory		65,600		109,400
Common stock, $5 par value		180,000		216,000		Total assets		378,000		402,500
Retained earnings		172,700		127,200		Common stock, $5 par value		180,000		216,000
Total liabilities and equity	$	499,840	$	548,500		Retained earnings		124,777		58,134

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. (Do not round intermediate calculations.)

1.2

Identify the company you consider to be better in managing short-term credit risk.

	Barco company
	Kyan company