Summary information from the financial statements of two companies competing in the same industry follows.

Required
1. 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,
(f) Days€™ sales uncollected. Identify the company you consider to be the better short-term credit risk and explain why.
Round to one decimal place.
2. For both companies compute the
(a) Profit margin ratio,
(b) Total asset turnover,
(c) Return on total assets,
(d) Return on common stockholders€™ equity. Assuming that each company€™s stock can be purchased at $75 per share, compute their
(e) Price-earnings ratios
(f) Dividend yields.
Round to one decimal place. Identify which company€™s stock you would recommend as the better investment and explain why.

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Barco Company Company Kyan Barco Kyan Company Com pany Data from the current year-end balance sheets Assets Cash. Data from the current year's income statement $ 19,500 34,000 Cost of goods sold 585,100 7,900 9,100 7,200 Income tax expense14,800 632,500 3,000 24,300 62,200 210,400 5.II 3.93 37,400 57,400 Interest expense Current notes receivable (trade) Merchandise inventory 84,440 132,500 Net income . 5,000 6,950 Basic earnings per share... 4.51 Plant assets, net. Total assets .. . . . . . 290,000 304,400 Cash dividends per share.3.8 .. $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net....29,800 54,200 Liabilities and Equity Current liabilities.... Long-term notes payable Common stock, $5 par value Retained earnings ...123,300 142,150 Common stock, $5 par value180,000 206,000 Total liabilities and equity 107,400 382,500 80,800 101,000 Merchandise inventory . 55,600 $445,440 $542,450 Retained earnings.. 98,300 93,600