Barco Company

Kyan Company

Barco Company

Kyan Company

Data from the current year-end balance sheets

Data from the current years income statement

Assets

Sales

$

760,000

$

916,200

Cash

$

19,500

$

36,000

Cost of goods sold

595,100

642,500

Accounts receivable, net

34,400

52,400

Interest expense

8,600

15,000

Current notes receivable (trade)

9,100

8,000

Income tax expense

14,608

25,294

Merchandise inventory

84,940

134,500

Net income

141,692

233,406

Prepaid expenses

5,500

7,550

Basic earnings per share

3.94

5.16

Plant assets, net

310,000

310,400

Total assets

$

463,440

$

548,850

Beginning-of-year balance sheet data

Liabilities and Equity

Accounts receivable, net

$

26,800

$

57,200

Current liabilities

$

66,340

$

96,300

Current notes receivable (trade)

0

0

Long-term notes payable

85,800

109,000

Merchandise inventory

59,600

111,400

Common stock, $5 par value

180,000

226,000

Total assets

408,000

412,500

Retained earnings

131,300

117,550

Common stock, $5 par value

180,000

226,000

1.1

For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected.(Use 365 days a year. Do not round intermediate calculations.)

2.1

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 paid cash dividends of $3.90 per share and each companys stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Lastly, Identify which companys stock you would reccomend as a better investment? Barco or Kayan?