2 Part 2 of 2 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 Data from the current year-end Barco Company Company Barco Company Kyan Company Data from the current year's income balance sheets Book statement Assets Sales $770,000 $880,200 Cash $ 21,000 $35,000 Cost of goods sold 593,100 630,500 Accounts receivable, net Merchandise Inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long tere notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 39,400 04,340 5,700 350,000 $2,400 140,500 7,100 Interest expense Income tax expense Net income 6,500 11,000 14,000 24,300 153,600 214,400 306,400 Basic earnings per share 3.64 5.20 $ 500,440 $ 541,400 Cash dividends per share 3.77 4.83 Beginning of year balance sheet data i $ 63,340 $104,300 Accounts receivable, nat $29,000 $ 58,200 82,000 200,000 101,000 Merchandise inventory 63,600 109,400 200,000 Total assets 445,000 362,500 154,300 110,100 $ 500,440 5 541,400 Common stock, $5 par value Retained earnings 200,000 206,000 151,500 01,736 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (d) return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $70 per share, compute the (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. 2 of 21 eBook 20. 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 $70 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 Ret On 2A Price Earn Equity Ratio 2A Div Yield Req 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator: Profit margin ratio Profit margin ratio % % 2A Tot Asset Turn > Part 2 of 2 eBook 20. 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 $70 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 Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Assets Jurn Equity 2A Price Earn Ratio 2A Div Yield Req 28 For both companies compute the total asset turnover (b) Company Numerator: Barco Kyan Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover times times 2 Part 2 of 2 eBook Retained earnings www 154,300 130,100 Total liabilities and equity $ 500,440 $ 541,400 Common stock, $5 par value Retained earnings 200,000 205,000 151,500 $1,736 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 $70 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 2A Price Earn 2A Div Yield Ratio Turn Assets Equity For both companies compute the return on total assets, Ratio Red 201 (c) Company Barco Kyan Numerator Return on Total Assets Denominator: Return on Total Assets Return on total assets % 2 Part 2 of 2 Retained earnings Total liabilities and equity 154,300 130,100 $ 500,440 $541,400 Common stock, $5 par value Retained earnings 200,000 206,000 151,500 81,736 20. 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 $70 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 Numerator: Barco Kyan Ratio 2A Price Ear 2A Div Yield Req 28 Return On Equity Denominator Return On Equity Return On equity Retained earnings Total liabilities and equity t 154,300 130,100 $ 500,440 5 541,400 Common stock, 15 par value Retained earnings 200,000 200, 151,500 81,736 2 Part 2 of 2 eBook 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 $70 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 2A Price Earn 2A Div Yield Reg 20 Ratio Assuming that share and each company's stock can be purchased at $70 per share, compute their price-earnings ratios. (0) Company Barco Kyan Numerator Price Earnings Ratio Denominator Price Eamings Ratio Price earnings ratio 2 Part 2 of 2 Retained earnings 154,300 Total liabilities and equity $ 500,440 130,100 $ 541,400 Common stock, $5 par value Retained earnings 200,000 206,000 151,500 81,736 26. 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 $70 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. +book Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On 2A Price Earn Equity Ratio 2A DV Yield Reg 28 Assuming that each company's stock can be purchased at $70 per share, compute their dividend yields. 10 Company Barco Kyan Numerator Dividend Yield 7 Denominator:: Dividend Yield Dividend yield 2 Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 63,340 82,800 $ 104,300 Accounts receivable, net $29,601 30,4 101,000 200,000 154,300 206,000 Merchandise inventory. Total assets 63,600 109,400 448,000 362,500 130,100 Total liabilities and equity $ 500,440 $ 541,400 Common stock, $5 par value Retained earnings 200,000 206,000 151,500 81,736 2 of 2 Book 28. 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 $70 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 Mari 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn 2A Div Yield Req 281 Ratio Identify which company's stock you would recommend as the better investment. The better investment < 2A Div Yield