138,500 . Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $790,000 $911,200 Cash $ 20,000 $ 36,000 Cost of goods sold 596,100 642,500 Accounts receivable, net 33,400 55,400 Interest expense 8,300 12,000 Merchandise inventory 84,340 Income tax expense 15,185 25 155 Prepaid expenses 6,200 7,800 Net income 170,415 231,545 Plant assets, net 360,000 311,400 Basic earnings per share 4.06 5.36 Total assets $503,940 $549,100 Cash dividends per share 3.79 4.01 | Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,340 $ 98,300 Accounts receivable, net $ 29,800 $ 51/200 Long-term notes payable 83,800 111,000 Merchandise inventory 59,600 105,400 Common stock, $5 par value 210,000 216,000 Total assets 418,000 372,500 Retained earnings 144,800 123,800 Common stock, $5 par value 210,000 216,000 Total liabilities and equity $503,940 $549,100 Retained earnings 133,565 65.487 Problem 17-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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 Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn ZA Div Yield Req 2B Ratio For both companies compute the return on common stockholders' equity. (d) Company INet income Choose Numerator: Preferred dividends Return On Common Stockholders' Equity Choose Denominator Average common stockholders' equity 1 1 Return On Common Stockholders' Equity = Return On common stockholders' equity Barco 0 % 170,415 231,545 Kyan 0 % Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,000 $ 36,000 Accounts receivable, net 33,480 55,400 Merchandise inventory 84, 340 138,5e Prepaid expenses 6,200 7,880 Plant assets, net 360,000 311,480 Total assets $583,940 $549,190 Barco Kyan Company Company Data from the current year's income statement Sales $790,000 $911,200 Cost of goods sold 596,180 642 see Interest expense 8,300 12,000 Income tax expense 15,185 25155 Net income 179,415 231,545 Basic earnings per share 4.96 9.36 Cash dividends per share 3.79 4.01 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,349 $ 98,300 83,880 111,000 210, eee 216, eee 144,800 123,800 $503,940 $549, 180 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 51200 59,689 105,400 418,eee 372 see 210,000 216,000 133,565 65487 Problem 17-5A Part 1 Fequired: a. For both companies compute the (a) current ratio, (b) acid-test ratio, (C) accounts receivable turnover, (a) Inventory turnover, (e) days' ales In Inventory, and (days' sales uncollected. (Do not round Intermediate calculations.) b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol 1B short term Inv For both companies compute the acid-test ratio. Acid-Test Ratio (b) ( Company Cash Choose Numerator: Choose Denominator: Current liabilities Short-term investments Current receivables 33,400 = Acid-Test Ratio Acid-test ratio 65,340 = 0.8 to 1 98,300 0.9 to 1 1 Barco 20.000 + $ $ $ Kyan 36,000 + 55.400 / $