Question: how do i do this rt 2 of 2 ts Barco Book erences Problem 13-5A (Algo) Comparative ratio analysis LO P3 {The following information applies






rt 2 of 2 ts Barco Book erences Problem 13-5A (Algo) Comparative ratio analysis LO P3 {The following information applies to the questions displayed below) Summary information from the financial statements of two companies competing in the same industry follows, Barco Kyan Company Data from the current year-end Company Company Company balance sheets Data from the current year's income statement Assets Sales $ 800,000 $903,200 cash $ 21,500 $ 31,000 Cost of goods sold 593,100 640,500 Accounts receivable, net 36,400 52,400 Interest expense 7.700 11,000 Merchandise inventory 84,540 134,500 Income tax expense 15,377 24,935 Prepaid expenses 5,500 7,500 Net Income 183,823 226,265 Plant assets, net 300,000 309, 400 Basic earnings per share 4.38 5.25 Total assets $ 447,940 $ 534,00 Cash dividends per share 3.78 3.91 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 71,340 $ 94,300 Accounts receivable, net $ 29,800 $ 56,200 Long-term notes payable 78,800 105,000 Merchandisi inventory 53,600 107, 400 Common stock, S5 par value 210,000 216,000 Total assets 378,000 362,500 Retained earnings 87,800 119,500 Common stock, $5 par value 210,000 216,000 Total liabilities and equity $ 447,940 $ 534,800 Retained earnings 62,737 61,647 Problem 13-5A (Algo) Part 2 GIRON 00 8 Total abilities and equity 447,940 $ 534,800 Betained earnings 62.737 61,649 Problem 13-5A (Algo) Part 2 Part 2 of 2 10 points 2a. For both companies compute the profit margin ratio, (b) total asset turnover, (return on total assets, and (d return on equity Assuming that each company's stock can be purchased at $95 per share, compute their (e price eamings ration and individend yields 2b. Identity which company's stock you would recommend on the better investment, Ook Complete this question by entering your answers in the tabs below. Buferences ZA Prof Mar 24 Tot Asset A Reton Tot 2A Rat On A Price Earn 2a Div Yield Reg 21 Ratio Tum Assets Equity Ratio Assuming that each company's stock can be purchased at $95 per share, compute their dividend yields. 0 Dividend Yield Company Numerator: Dividend Yield Denominator Dividend yield Barco 0 % Kyan 0 % 2A Price Ear Ratio Reg 28 > Problem 13-5A (Algo) Part 2 of 2 10 points 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (a return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (el price-eamings ratios and ( dividend ylelds 2b. Identify which company's stock you would recommend as the better investment Book Complete this question by entering your answers in the tabs below. References 2A Prol Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Equity 2A Price Eam Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. (a) Company Numerator: Current assets Barco 19.440 Kyan 62.750 Profit Margin Ratio Denominator: Current liabilities 71,340 - 94,300 Profit margin ratio Profit margin ratio 27.2% 66.5% 2A Tot Asset Turn > RA Prat Ma Rati Part 2 of 2 RO Goints 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (d) return on total assets, and return on equity Assuming that each company's stock can be purchased at $95 per share, compute their le price-earnings ratios ad dividend yields. 2b. Identity which company's stock you would recommend as the better investment eBook References Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar ZA Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity 2A DIV Yield Ratio For both companies compute the total asset turnover (b) Total Asset Turnover Total Asset Tumover Company Denominator Numerator: Total av turnover Current liabilities 0 times Barco 21,500 O times Kyan 31,000 ( 2A Prof Mar Ratio 2A Ret on Tot Assets > Problem 13-5A (Algo) Part 2 Part 2 of 2 10 points 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their le price earnings ratios and dividend yields. 2b. Identify which company's stock you would recommend as the better investment. ebook Complete this question by entering your answers in the tabs below. References 2A Price Earn ZA DIN Yield Reg 21 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Tum Assets Equity Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Numerator Denominator: 1 Current liabilities Return on Total Assets Return on totalssets 0 % 0 Barco Kyan 2A Ret On Equity >
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
