Question: Please help!! There are different sections that need to be answered! Each question is in order as well. Required information [The following information applies to
Please help!!
There are different sections that need to be answered! Each question is in order as well.
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Required information [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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales Cash $ 19,500 $ 34,000 Cost of goods sold $760,000 590,100 $ 891,200 640,500 Accounts receivable, net 35,400 58,400 Interest expense 8,700 13,000 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 5,300 300,000 $ 445,140 $ 541,300 84,940 130,500 Income tax expense 14,608 24,603 7,000 311,400 Net income 146,592 213,097 Basic earnings per share 3.66 5.17 Cash dividends per share 3.74 4.03 data $ 68,340 $ 95,300 79,800 111,000 Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory $ 26,800 $ 54,200 55,600 105,400 200,000 206,000 Total assets 418,000 412,500 97,000 129,000 Total liabilities and equity $ 445,140 $ 541,300 Common stock, $5 par value Retained earnings 200,000 206,000 100,008 81,939 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 $80 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Assets Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: 1 1 Profit Margin Ratio Denominator: = Profit margin ratio = Profit margin ratio = 0% = II 0% < 2A Prof Mar Ratio 2A Tot Asset Turn >
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