Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses...
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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
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1 Profit margin ratio Net income Net sales Company 183523 800000 023 23 Company B 239572 910200 026 ... View the full answer
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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