Summary information from the financial statements of two companies competing in the same industry follows. Barco...

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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. 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 company $ 32,000 58,400 136,500 7,300 $ 19,000 39, 400 84,340) 5,900 360,000 307,400 $ 508,640 $ 541,600 $ 91,300 115,000 206, 000 129, 300 $70,348 79, 800 180,000 178,500 $ 508,640 $ 541,600 Data from the current year's income statement Sales. Cost of goods sold Interest expense Incone tax expense 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 $ 790,000 $ 911, 200 650, 500 17,000 25, 155 218,545 5.30 3.93 584,100 8, 200 15, 185 182,515 5.07 3.71 $ 25,800 55,600 Kyan Company 448,000 180,000 129,545 $ 53,200 109,400 372,500 200,000 72,671 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 ( 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. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the return on equity. (d) Company Barco Kyan Numerator: Net income 182,515 ( 218,545 Answer is not complete. 1 2A Price Earn Ratio Return On Equity Denominator Average total equity 2A Div Yield <2A Ret on Tot Assets Req 2B Return On Equity Return On equity 2A Price Earn Ratio > 0 0 % %6 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. 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 company $ 32,000 58,400 136,500 7,300 $ 19,000 39, 400 84,340) 5,900 360,000 307,400 $ 508,640 $ 541,600 $ 91,300 115,000 206, 000 129, 300 $70,348 79, 800 180,000 178,500 $ 508,640 $ 541,600 Data from the current year's income statement Sales. Cost of goods sold Interest expense Incone tax expense 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 $ 790,000 $ 911, 200 650, 500 17,000 25, 155 218,545 5.30 3.93 584,100 8, 200 15, 185 182,515 5.07 3.71 $ 25,800 55,600 Kyan Company 448,000 180,000 129,545 $ 53,200 109,400 372,500 200,000 72,671 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 ( 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. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the return on equity. (d) Company Barco Kyan Numerator: Net income 182,515 ( 218,545 Answer is not complete. 1 2A Price Earn Ratio Return On Equity Denominator Average total equity 2A Div Yield <2A Ret on Tot Assets Req 2B Return On Equity Return On equity 2A Price Earn Ratio > 0 0 % %6

Answer rating: 100% (QA)

2a Profit Margin Ratio can be calculated as Net Income Net Sales For Barco 182515 790000 100 2310 Fo... View the full answer