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. 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 $70 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.

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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $810,000 $897,200 Cash $ 21,500 $ 36,000 cost of goods sold 589,100 634,500 Accounts receivable, net 36,400 56,400 Interest expense 7,600 11,000 Current notes receivable 9,800 7,600 Income tax expense 15,569 24,769 (trade) Merchandise inventory 84,840 142,500 Net income 197,731 226,931 Prepaid expenses 6,100 7,550 Basic earnings per share 4.94 4181 Plant assets, net 290,000 306,400 Cash dividends per share 3.79 3.94 Total assets $448,640 $556,450 Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 26,800 $ 55,00 Current liabilities $ 62,340 $100, 300 Current notes receivable (trade) Long-term notes payable 80,800 113,000 Merchandise inventory 57,600 105,400 Common stock, $5 par value 200,000 236,000 Total assets 388,000 392,500 Retained earnings 105,500 107,150 Common stock, $5 par value 200,000 236,000 Total liabilities and equity $448,640 $556,450 Retained earnings 59,369 66,187