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Barco Company Kyan Company Barco Company Kyan Company Data from the current year end balance sheets Assets Accounts 19,500 37,400 9.100 84.440 5,000 290,000 $445,440

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Barco Company Kyan Company Barco Company Kyan Company Data from the current year end balance sheets Assets Accounts 19,500 37,400 9.100 84.440 5,000 290,000 $445,440 Data from the current year's income statement Sales $770,000 Cost of goods sold 585,100 Interest expense 7.900 Income tax expense 14.800 Net income 162.200 Basic earnings per share Cach dividend per sham $ 34,000 57.400 7.200 132.500 6,950 304,400 $542.450 Merchandise inventory $880,200 632.500 13,000 24,300 210,400 5.1 Total assets Liabilities and Equity 579,500S 54,200 1.340 $ 93.300 101.000 Longtems notes payable Como 55 valu Whenden Totallabate neutty Beginning of year balance sheet data Accounts receivablesnet Current notes receivable (trade) Merchandise intentory. total Common stock 55 Retained earnings OOO 142.15 55.600 398,000 180.000 98.300 107400 382,500 206.000 93.600 445.400 5542.450 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receiv- able turnover, (d) inventory turnover, (e) days' sales in inventory, and ()) days' sales uncollected. Identify the company you consider to be the better short-term credit risk and explain why. Round to one decimal place. 2. 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 $75 per share, compute their (e) price-earnings ratios and dividend yields. Round to one decimal place. Identify which compuny's stock you would recommend as the better investment and explain why

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