Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Kyan $ 20,000 33, 400 84,440 5,308 350,000 $493,140 $ 547,450 $ 33,000 60, 400 136,500 7,150 310, 400 Numerator: 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio For both companies compute the return on total assets. (c) Company Net income $ 65,340 $ 102,300 80, 800 190,000 157,000 $493, 148 99,000 216,000 130, 150 $ 547, 450 183,523 / 239,572 / Data from the current year's income statement Complete this question by entering your answers in the tabs below. Return on Total Assets Denominator: Sales Cost of goods sold Interest expense Income tax expense Average total assets 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 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and ( dividend yields. 2b. Identify which company's stock you would recommend as the better investment. 2A Div Yield 11 440,570 = 464,975 = Req 28 Return on Total Assets Return on total assets $ 800,000 $ 910, 2001 593, 100 8,000 15,377 41.7 % 51.5 % 183, 523 4.83 3.72 $ 26,800 63,600 388,000 190,000 114,837 632,500 13,000 25, 128 239, 572 5.55 3.98 $ 58, 2001 111, 400 382,500 216,000 62,514 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 Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Barco Kyan $ 20,000 33, 400 84,440 5,308 350,000 $493,140 $ 547,450 $ 33,000 60, 400 136,500 7,150 310, 400 Numerator: 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio For both companies compute the return on total assets. (c) Company Net income $ 65,340 $ 102,300 80, 800 190,000 157,000 $493, 148 99,000 216,000 130, 150 $ 547, 450 183,523 / 239,572 / Data from the current year's income statement Complete this question by entering your answers in the tabs below. Return on Total Assets Denominator: Sales Cost of goods sold Interest expense Income tax expense Average total assets 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 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and ( dividend yields. 2b. Identify which company's stock you would recommend as the better investment. 2A Div Yield 11 440,570 = 464,975 = Req 28 Return on Total Assets Return on total assets $ 800,000 $ 910, 2001 593, 100 8,000 15,377 41.7 % 51.5 % 183, 523 4.83 3.72 $ 26,800 63,600 388,000 190,000 114,837 632,500 13,000 25, 128 239, 572 5.55 3.98 $ 58, 2001 111, 400 382,500 216,000 62,514
Expert Answer:
Answer rating: 100% (QA)
1 Profit margin ratio Net income Net sales Company 183523 800000 023 23 Company B 239572 910200 026 ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Shown as follows are the amounts from the stockholders' equity section of the balance sheets of Wasson Corporation for the years ended December 31, 2017 and 2018. 2018 2017 Stockholders' equity:...
-
Shown as follows are data relating to the operations of Beach, Inc., during 2018. Continuing operations: Net...
-
(Asset Substitution/Risk-Shifting the over-investment Problem) Consider Baxter, Inc., which is facing financial distress. -Baxter has a loan of $1 million due at the end of the year. -Without a...
-
1) Identify a Major Global Company 2) Provide a brief History of the Company and what it does. 3) Identify their top three (3) Tier 1 Suppliers - Explain what they supply, where they are located and...
-
What is the difference between a pure hypervisor and a pure microkernel?
-
RESUME PROJECT: Develop a detailed job description for Patient Care Associate/ Patient care technician. Compare this description to your current resume. What similarities and differences do you...
-
An element of a balanced orthotropic carbon/epoxy lamina is under the state of stress shown in Figure 2.20. If the properties of the woven carbon fabric/ epoxy material are \(E_{1}=70 \mathrm{GPa},...
-
Frankum Company has issued three different bonds during 2014. Interest is payable semiannually on each of these bonds. 1. On January 1, 2014, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2014,...
-
A basketball player balances a ball on his finger. The ball is rotating with an initial angular speed of 4 rad/s. He then uses his hand to push along the edge of the ball to make it rotate faster....
-
Batch processes are often used in chemical and pharmaceutical operations to achieve a desired chemical composition for the final product. Related heat transfer processes are typically transient,...
-
An unrealistic feature of the Lotka-Volterra model is that the prey exhibits unlimited growth in the absence of the Predator. The model described by the following system remedies this shortcoming (in...
-
Evaluate the following quote: Higher take-home wages for any group should increase the labor force participation rate for that group.
-
The courts are less willing to apply the doctrine of res ipsa loquitur in cases in which the defendants are strangers and act independently. True False
-
The Good Samaritan statutes do not protect people who provide aid in good faith if they end up injuring the plaintiff. True False
-
Under the common law a defendant has no legal duty to aid a plaintiff in distress unless the defendant can assist the plaintiff without causing harm to himself. True False
-
Suppose the adult population of a city is 9,823,000 and there are 3,340,000 people who are not in the labor force and 6,094,000 who are employed. a. Calculate the number of adults who are in the...
-
This Final Project requires you to create a Linux server environment, demonstrating the various features and tools of a Linux network. You will document this process with both written descriptions,...
-
The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...
-
During the current year, the total assets of Mifflinburg Corporation decreased by $60,000 and total liabilities decreased by $300,000. The company issued $100,000 of new stock, and its net income for...
-
An analysis of the Marketable Securities control account of Fancher Products, Inc., shows the following entries during the year. Balance, Jan. 1....................... $ 290,000 Debit entries...
-
Custom Truck Builders frequently uses long-term lease contracts to finance the sale of its trucks. On November 1, 2018, Custom Truck Builders leased to Interstate Van Lines a truck carried in the...
-
A thermos flask is an example of isolated system. State True (T) or False (F)
-
In a closed system, mass does not remain constant. State True (T) or False (F)
-
In a reversible process, initial and final states of the system are same. State True (T) or False (F)
Study smarter with the SolutionInn App