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eek 12 Problemi Saved Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below) Summary information

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eek 12 Problemi Saved Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below) Summary information from the financial statements of two companies competing in the same industry follows BarcoKyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $780,000 $897,200 589,100 632,580 9,00013,000 14,99224,769 166,908 226,931 4.394,61 3.81 3.93 s 21,00 32,000 Cost of goods sold 35,400 51,400 Interest expense 84,240 134,500 Income tax expense 5,1007,700 Net income 350,990308,400 Basic earnings per share $495,740 $534,00 Cash dividends per share Beginning-of-year balance sheet data Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value190,000 246,00 Total assets Retained earnings Total liabilities and equity $495,740 $534,000 Retained earnings 28,800 $ 53, 200 63,600 111,400 448,000 392,580 196,606 246,000 137,472 50,125 64,340 $ 99,300 Accounts receivable, net 81,800 105,000 Merchandise inventory 159,60083,700 Common stock, $5 par value blem 13-5A Part 2 For both companies compute the (a) profit margin ratio. (D) total asset turnover, (d return on total assets, and (d return on common 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (d return on totail stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per s earnings ratios and (5 dividend yields. (Do not round intermediate calculations. Round your answe 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 Earm 2A Div Yield Rea 2B 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets Ratio Equity For both companies compute the profit margin ratio. Profit Margin Ratio ( CompanyChoose Numerator:Choose Denominator:Profit margin ratio Profit margin ratio 01% Barco Kyan 01% 2A Tot Asset Turn> stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per sha earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers t 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 Ratio 2A Div Yield 2A Ret on 2A Pro Marg 2A Tot Asset2A Ret on Tot Stock Ratio Turn Equity For both companies compute the total asset turnover Total Asset Turnover tta Total Asset Turnover Company Choose Numerator: Choose Denominator | Total asset turnover 0 times 0 times Barco Kyan > 2A Ret on Tot Assets K2A Pro Marg Ratio Prev 2a. For both companies compute the (a) profit margin ratio, (b total asset turnover. (g return on total a stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per sh earnings ratios and (f dividend yields. (Do not round intermediate calculations. Round your answers 2b. Identify which company's stock you would recommend as the better investment. ok Complete this question by entering your answers in the tabs below ces 2A Ret On com Stock 2A Price Earm Ratio 2A Ret on Tot Assets 2A Tot Asset Turn 2A Div Yield 2A Pro Marg Req 2B Ratio Equity For both companies compute the return on total assets. lst.on Total Assets - Return on Total Assets | Return on total assets Choose Denominator: mpany Choose Numerator: 01% 01% Barco Kyan 2A Ret On Com Stock Equity 2A Tot Asset Turn K Prev Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (4) return on total assets, and (d return on com stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, compute their (e) pr earnings ratios and (f dividend 2b. Identify which company's stock you would recommend as the better investment. ce- yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. A price Earm 2A Div Yield Reg 28 2A Pro Marg 2A Tot Asset 2A Ret on Tot Com Stock Equity Ratio Turn Assets Ratio For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity Choose Numerator: Choose Denominator Return On Common Stockholders' Equity Return On common stockholders' equity Barco 01% 01% Kyan 2A Ret on Tot Assets 2A Price Earn Ratio > 2 of 2 Prev 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (d return on total assets, stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, co earnings ratios and (f dividend yields (Do not round intermediate calculations. Round your answers to 2 d 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 Tot Asset 2A Ret on TotC too 2A price Earm 2A Div Wild Req 28 Ratio Turn Assets Ratio Equity suming that share and each company's stock can be purchased at $95 per share, compute their price-earning Price Eanings Ratio Choose Numerator:Choose Denominator ompany Barco Kyan Price Earnings Ratio Price-earnings ratio 0 times 0 times K2A Ret On Com Stock Equity 2A Div Yield > 2a. For both companies compute the (a) profit margin ratio, ( total asset turnover, (c) return on total assets. a stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, co earnings ratios and (f dividend yields. (Do not round intermediate calculations. Round your answers to 2 d 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 Reton Com Stock Asset 2A Ret on Tot Turn 2A Price Eam3 2A Div Yield 2A Pro Marg Ratio 2A Tot Req 2B Ratio Assets Equity Assuming that share and each company's stock can be purchased at $95 per share, compute their dividend yields Dividend Yield I Choose Denominator: Dividend Yield Dividend yield ompany Choose Numerator 01% 01% Barco Kyan Req 2B > 2A Price Earn Ratio

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