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Finding the profit margin ratio, total asset turnover, return on assets, return on equity for both companies. Assuming that each company's stock can be purchased
Finding the profit margin ratio, total asset turnover, return on assets, return on equity for both companies. Assuming that each company's stock can be purchased at $75 per share, compute their price-earning ratios and dividend yields.
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Required information Problem 13-5A (Algo) Comparative ratio analysis LO 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. Barco Company Kyan Company 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-term notes payable Common stock, $5 par value Retained earnings Total 11 abilities and equity $ 18,000 38,400 84,840 5,500 370,000 $ 516,740 $ 35,000 59,400 138,500 7,650 312,400 $.552,950 Data from the current year's income statement Sales 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 Total assets Common stock, $5 par value Retained earnings $. 778,000 585,100 9,100 14,800 161,000 4.74 3.81 $ 918,200 632,500 14.000 25,349 246,351 5.98 3.96 $ 62,340 83,800 170,000 200,600 $ 516,740 $ 184,300 113,000 206,000 129,650 $ 552,950 $ 27,800 55,600 398,000 170,000 169, 140 5 50,200 115,400 362,500 206,eee 46,451 Problem 13-5A (Algo) Part 2 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (a return on total assets, and return on equity. Assuming that each company's stock can be purchased at $75 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. Req 2B 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Return on 2A Price Earn 2A Div Yield Ratio Turn Assets Equity Ratio For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Numerator: 1 Denominator: Profit margin ratio Net Income Net sales Profit margin ratio Barco 1 0 % Kyan 7 0 % 2A Tot Asset Turn > Problem 13-5A (Algo) Part 2 2o. For both companies compute the (a) profit margin ratio. (b) total asset turnover. ( return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (y 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 Ratio ZA Tot Asset 2A Ret on Tot 2A Return on 2A Price Earn Turn Assets Equity Ratio 2A Div Yield Reg 28 For both companies compute the total asset turnover (b) Company Total Asset Turnover Denominator: Numerator: Total Asset Turnover Total asset turnover O times Oltimes Barco Kyan Step by Step Solution
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