Question: Help Sa ment Analysis Project Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data
Help Sa ment Analysis Project Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21.000 $37.000 Accounts receivable, net 39,400 51,400 Merchandise inventory 84,940 128.500 Prepaid expenses 5.800 7,400 Plant sot, net 320,000 302,400 Total assets 5471,140 $531,700 Barco Kyan Company Company Data from the current year's income statement Sales $800,000 $887,200 cost of goods sold 588,100 640,500 Interest expense 3,800 16,000 Income tax expense 15,377 24,493 Net income 187,723206, 207 Basie earnings per share 4.27 4.19 Cash dividends per share 3.76 4.00 Liabilities and Equity Current liabilities Long-ten notes payable Common stock$5 par value Retained earnings Total liabilities and equity $ 68,34094,300 79, 800 105,000 220,000 246,000 103.000 86,00 $471,140 $531,700 Beginning-of-year balance sheet data Accounts receivable, net Merchandise Inventory Total assets Common stock, 55 par value Retained earnings $ 31,800 63,600 418,000 220,000 80,717 $ 51,200 111,400 372,500 246,000 76,993 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e) price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below
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