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3 Part 2 of 2 Required information [The following information applies to the questions displayed below] Summary information from the financial statements of two
3 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. Barco Company Company Barco Company Kyan Company 33.34 DO 2003502) Plant assets, net Total assets Liabilities and Equity Current 11abilities Data from the current year-end balance sheets Data from the current year's Incone statement Assets Sales $800,000 $891,200 Cash Accounts receivable, net $22,000 40,400 $ 34,000 Merchandise inventory 84,640 Prepeld expenses 320,000 $472,340 5,300 $336,950 7,650 307,400 Long-term notes payable $ 68,340 $92,300 79,500 107,000 190,000 236,000 Total assets 114,300 $472,340 101,650 $ 534,950 Common stock, $5 per value Retained earnings 51,400 116,500 Cost of goods sold Interest expense Income tax expense Net Income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory 590,100 632,500 7,700 11,000 15,377 24,603 106,823 223,097 4.92 4,73 3.82 3.97 $ 30,000 61,600 $51,200 111,400 370,000 190,000 372,500 236,000 92,537 65,937 Common stock, 55 par value Retained earnings Total liabilities and equity 26. For both companies compute the (a profit margin ratio. (oj total asset turnover. (d) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (el price-earnings ratios and (4 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. 11. Seid Mar To ac But The 3A Bat A Brie Far
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