[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		$	903,200
Cash	$	21,500		$	37,000			Cost of goods sold		590,100			634,500
Accounts receivable, net		35,400			58,400			Interest expense		9,200			19,000
Current notes receivable (trade)		9,600			8,800			Income tax expense		15,185			24,935
Merchandise inventory		84,840			132,500			Net income		175,515			224,765
Prepaid expenses		5,400			7,750			Basic earnings per share		4.62			4.97
Plant assets, net		280,000			307,400			Cash dividends per share		3.70			4.00
Total assets	$	436,740		$	551,850
								Beginning-of-year balance sheet data
Liabilities and Equity								Accounts receivable, net	$	30,800		$	55,200
Current liabilities	$	64,340		$	91,300			Current notes receivable (trade)		0			0
Long-term notes payable		80,800			107,000			Merchandise inventory		61,600			115,400
Common stock, $5 par value		190,000			226,000			Total assets		388,000			372,500
Retained earnings		101,600			127,550			Common stock, $5 par value		190,000			226,000
Total liabilities and equity	$	436,740		$	551,850			Retained earnings		66,685			83,585

Required: 1a. 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.) 1b. Identify the company you consider to be better short-term credit risk. "Correct Answers" are needed for all 1A tabs, 2A tabs, and 1B & 2B tabs. 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that share and each companys stock can be purchased at $80 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which companys stock you would recommend as the better investment.