Data from The Current Year End Balance Sheets			Data from the current years income
Assets			Sales
Cash	$19,500	$35,000	Cost of Goods Sold
Accounts Receivable	$40,400	$52,400	Interest Expense
Merchandise Inventory	$84,940	$132,500	Income Tax Expense
Prepaid Expenses	$5,500	$7,150	Net Income
Plant Assets	$340,000	$311,400	Basic Earnings per Share
Total Assets	$490,340	$538,450	Cash Dividends Per Share
Liabilities and Equity			Beginning of Year Balance Sheet
Current Liabilities	$64,340	$103,300	Accounts Receivable, Net
Long-Term Notes Payable	$83,800	$113,000	Merchandise Inventory
Common Stock, $5 Par Value	$190,000	$226,000	Total Assets
Retained Earnings	$152,200	$96,150	Common Stock, $5 Par Value
Total Liabilities and Equity	$490,340	$538,450	Retained Earnings

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.

1A Days Sal in Iny Turnover 1A Days Sal Uncol 1B short term 1A Current 1A Acid Test A Acct Rec 1A Invent Ratio Ratio Turn For both companies compute the current ratio. CLETT Hato Choose Denominator: Company Choose Numerator: Current Ratio Current ratio 0 to 1 0 to 1 Barco Kyan 1A Days Sal in 1A Days Sal Inv Uncol 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent Ratio Ratio Turn Turnover For both companies compute the acid-test ratio. (b) Company Choose Numerator: Acid-Test Ratio Choose Denominator: + 1 Barco Kyan + + 1A Current 1A Acid Test 1A Acct Rec Ratio Ratio Turn HOTELY 1A Invent Turnover 1A Days Sal in 1A Days Sal Inv Uncol 1B short term For both companies compute the inventory turnover. (d) Inventory Turnover Company Choose Nurnerator: | Choose Denominator: 1 Inventory Turnover = Inventory turnover 0 times 0 times Barco / Kyan / 1A Current Ratio 1A Acid Test 1A Acct Rec Ratio Turn 1A Invent Turnover 1A Days Sal in Iny 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. Company Choose Numerator: Days' Sales in Inventory Choose Denominator: * Days X Days' Sales in Inventory = Days' sales in inventory 0 days 1 Barco Kyan x x o days 1B short term 1A Current 1A Acid Test 1A Acct Rec 1A Invent 1A Days Sal in 1A Days Sal Ratio Ratio Turn Turnover Inv Uncol For both companies compute the days' sales uncollected. Days Sales Uncollected CompanyChoose Numerator: 1 Choose Denominator: x Days 1 (16) Days' Sales Uncollected Days' sales uncollected 0 days o days Barco 1 x 1 Kyan 1 X 1A Days Sal in Inv 1B short term Turn Uncol 1A Current IA Acid Test 1A Acct Rec 1A Invent 1A Days Sal Ratio Ratio Turnover Identify the company you consider to be the better short-term credit risk. Better short-term credit risk