Data from the current year-end balance sheets								Data from the current years income statement
Assets								Sales	$	780,000		$	885,200
Cash	$	21,500		$	31,000			Cost of goods sold		587,100			646,500
Accounts receivable, net		39,400			50,400			Interest expense		7,600			19,000
Merchandise inventory		84,740			140,500			Income tax expense		14,992			24,438
Prepaid expenses		5,100			7,250			Net income		170,308			195,262
Plant assets, net		340,000			313,400			Basic earnings per share		4.05			3.97
Total assets	$	490,740		$	542,550			Cash dividends per share		3.80			3.99
Liabilities and Equity								Beginning-of-year balance sheet data
Current liabilities	$	68,340		$	104,300			Accounts receivable, net	$	32,800		$	51,200
Long-term notes payable		85,800			105,000			Merchandise inventory		59,600			107,400
Common stock, $5 par value		210,000			246,000			Total assets		438,000			392,500
Retained earnings		126,600			87,250			Common stock, $5 par value		210,000			246,000
Total liabilities and equity	$	490,740		$	542,550			Retained earnings		115,892			88,296

Required: 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.

Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current assets Barco Kyan Current Ratio Choose Denominator: 1 Current liabilities = Current Ratio Current ratio 0 to 1 0 to 1