1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts 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 the better short-term credit risk.

Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Longterm notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Company $ 21,000 35,400 84,540 5,500 280,000 $ 426,440 $ 71,340 80,800 200,000 74,300 $ 426,440 Kyan Company $ 32.000 52.400 132.500 7.100 312,400 $ 536,400 $ 97,300 105,000 196,000 138.100 $ 536,400 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Barco Company $ 800,000 593,100 7,900 15,377 183,623 4.59 3.76 $ 28,800 53,600 408,000 200,000 41,077 Kyan Company $ 883,200 638,500 14.000 24.383 206.317 5.26 3.92 $ 53,200 111,400 382,500 196,000 85,447