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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 year’s income statement
Assets								Sales	$	800,000		$	923,200
Cash	$	19,500		$	32,000			Cost of goods sold		591,100			632,500
Accounts receivable, net		37,400			51,400			Interest expense		8,700			17,000
Current notes receivable (trade)		9,600			7,600			Income tax expense		15,377			25,487
Merchandise inventory		84,740			136,500			Net income		184,823			248,213
Prepaid expenses		5,500			6,950			Basic earnings per share		4.20			5.04
Plant assets, net		350,000			304,400			Cash dividends per share		3.77			3.98
Total assets	$	506,740		$	538,850
								Beginning-of-year balance sheet data
Liabilities and Equity								Accounts receivable, net	$	29,800		$	52,200
Current liabilities	$	65,340		$	98,300			Current notes receivable (trade)		0			0
Long-term notes payable		85,800			113,000			Merchandise inventory		59,600			109,400
Common stock, $5 par value		220,000			246,000			Total assets		428,000			412,500
Retained earnings		135,600			81,550			Common stock, $5 par value		220,000			246,000
Total liabilities and equity	$	506,740		$	538,850			Retained earnings		116,657			29,153

PLS HELP

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.

Answer 1