Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Connon stock, 35 par value Retained earnings Total liabilities and equity Barco Kyan Company Company Data from the current year's income statement Sales $ 19,000 $ 30,000 Cost of goods sold 39,480 52,488 Interest expense 84,540 138,500 Income tax expense 5,700 7,200 Net Income 330, eee 384,400 Basic earnings per share $ 478,640 $ 524,500 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,000 Merchandise inventory 170,000 236,000 Total assets 159,500 78,200 Connon stock, $ par value 3 478,640 $ 524,500 Retained earnings $ 778, eea $ 888,280 588,100 634,500 9, eee 35,000 14,800 24,521 158, 100 214,179 4.65 4.54 3.79 4.01 $ 31,800 59,600 388,000 170,000 130,260 $ 55,200 111,400 412,500 236,000 53,293 2a. For both companies compute the profit margin ratio, (o) total asset tumover, (o return on total assets, and (d) return on equity Assuming that each company's stock can be purchased at $105 per shore, compute their (el price-earnings ratlos and (dividend yields 26. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Ratio Reg 28 2A Prof Mar 21 Tot Asset 2A Ret on Tot 2A Ret On A Price Earn Turn Assets Equity Ratio ZA DIYield For both companies compute the profit margin ratio. (0) Profit Margin Ratio Company Numerator Denominator = Profit margin ratio 1 Profit margin ratio Barco 1 0 % Kyan 0 % ### Total assets 3.79 4.01 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total Viabilities and equity $ 478,649 $ 524,500 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,000 Merchandise inventory 170,000 236,000 Total assets 159,500 78,200 Common stock, $5 par value $ 478,640 $ 524,500 Retained earnings $ 31,800 59,600 388,000 170,000 130,260 $ 55,200 111, 488 412,500 236,800 53,293 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and (c) return on equity Assuming that each company's stock can be purchased at $105 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 Price Earn Ratio 2A Div Yield 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the total asset turnover Reg 28 (b) Company Total Asset Turnover Denominator: Numerator: Total Asset Turnover Total asset turnover O times O times Barco Kyan 2A Prof Mar Ratio 2A Reton Tot Aspets > WP 14,800 158, 100 4.65 3.79 24,521 214,179 4.54 4.01 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 84,540 130,500 Income tax expense 5,700 7,200 Net income 330,000 304,400 Basic earnings per share $ 478,640 $ 524,500 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,000 Merchandise inventory 170,000 236,000 Total assets 159,500 78,200 Common stock, $5 par value $ 478,640 $ 524,500 Retained earnings $ 31,800 59,600 388,888 170,000 130,260 $ 55,200 111,400 412,500 236,800 53,293 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price-earnings ratios and (y dividend ylelds. 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 Div Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Bet on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Numerator: Denominator: Return on Total Assets Return on total assets 0 % Barco Kyan 0 % 14,800 158, 100 4.65 3.79 ---- 24,521 214,179 4.54 4.01 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Liabilities Long-term notes payable Connon stock, $5 par value Retained earnings Total liabilities and equity 84,540 130,500 Income tax expense 5,700 7,200 Net Income 330,000 384,400 Basic earnings per share $ 478,640 $ 524,580 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,000 Merchandise inventory 170,000 236,000 Total assets 159,500 78,200 Common stock, 55 par value $ 478,640 $ 524,500 Retained earnings $ 31,800 59,680 388,880 170,880 130,260 $ 55,200 111,490 412,500 236,000 53,293 2a. For both companies compute the 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 $105 per share, compute their (c) price-earnings ratios and ( dividend yields 2b. Identity which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. 2A Div Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret on 2A Price Earn Ratio Tum Assets Equity Ratio For both companies compute the return on equity (d) Return On Equity Company Numerator Denominator Return On Equity Return On quity Barco Kyan 1 ol ON 14,800 158, 100 4.65 3.79 - 24,521 214,179 4.54 4.81 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 84,540 130,500 Income tax expense 5,700 7,200 Net income 330,000 304,400 Basic earnings per share $ 478,640 $ 524,50 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,800 Merchandise inventory 170,000 236,000 Total assets 159,500 78, 200 Common stock, $5 par value $ 478,640 $ 524,580 Retained earnings $ 31,800 59,600 388,000 178,000 138,260 $ 55,200 111,480 412,500 236,000 53,293 2a. For both companies compute the () profit margin ratio, (b) total asset turnover (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $105 per share, compute their (e) price-earnings ratios and (1dividend 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 Ratio Turn 2A Div Yield Assets Equity Ratio Reg 28 Assuming that share and each company's stock can be purchased at $105 per share, compute their price-earnings ratios. (o) Price-Earnings Ratio Company Numerator: Denominator Price-Earnings Ratio Price-earnings ratio Barco O times Kyan O times 14,800 158, 100 4.65 3.79 24,521 214,179 4.54 4.01 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 84,540 130,500 Income tax expense 5,700 7,200 Net income 330,000 304,400 Basic earnings per share $ 478,640 $ 524,500 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,000 Merchandise inventory 179,000 236,000 Total assets 159,500 78,200 Common stock, $5 par value $ 478,640 $ 524,500 Retained earnings $ 31,800 59,600 388,000 170,000 130,260 $ 55,200 111,400 412,500 236,080 53,293 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $105 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 ZA Price Earn 2A Div Yield Reg 28 Ratio Turn Assets Equity Ratio Assuming that each company's stock can be purchased at $105 per share, compute their dividend yields. 10 Dividend Yield Company Numerator: Denominator Dividend Yield Dividend yield Barco 0% Kyan 0 % 14,800 158, 190 4.65 3.79 24,521 214,179 4.54 4.01 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Connon stock, $5 par value Retained earnings Total liabilities and equity 84,540 130,500 Income tax expense 5,700 7,200 Net income 330,000 304,400 Basic earnings per share $ 478,640 $ 524,500 Cash dividends per share Beginning-of-year balance sheet data $ 64,340 $ 95,300 Accounts receivable, net 84,800 115,000 Merchandise inventory 170,000 236,000 Total assets 159,500 78,200 Common stock, 55 par value $ 478,640 5 524,500 Retained earnings $ 31,880 59,600 388,000 170,000 130,260 $ 55,200 111,400 412,500 236,000 53, 293 2a. For both companies compute the () 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 $105 per share, compute their (e) price-earnings ratios and (1) dividend 2b. Identify which company's stock you would recommend as the better investment. yields Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn 2A Div Yield Assets Equity Ratio Identify which company's stock you would recommend as the better Investment The better investment