Problem 13-5A Comparative ratio analysis LO P3

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 $ 770,000 $ 922,200 Cash $ 18,000 $ 31,000 Cost of goods sold 593,100 644,500 Accounts receivable, net 33,400 53,400 Interest expense 9,200 10,000 Merchandise inventory 84,240 136,500 Income tax expense 14,800 25,459 Prepaid expenses 5,100 7,700 Net income 152,900 242,241 Plant assets, net 330,000 306,400 Basic earnings per share 3.82 4.92 Total assets $ 470,740 $ 535,000 Cash dividends per share 3.74 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 62,340 $ 94,300 Accounts receivable, net $ 28,800 $ 51,200 Long-term notes payable 85,800 107,000 Merchandise inventory 57,600 111,400 Common stock, $5 par value 200,000 246,000 Total assets 398,000 402,500 Retained earnings 122,600 87,700 Common stock, $5 par value 200,000 246,000 Total liabilities and equity $ 470,740 $ 535,000 Retained earnings 119,300 42,751