i am sending this question again, i posted earlier ;the answer was wrong. I hope, i will get the right answer.
Retu Required information Problem 13-5A 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. Kyan Kyan Barco Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Barco Company Company Data from the current year's income statement Sales $770,000 $880, 200 Cost of goods sold 585, 100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 Cash dividends per share 3.81 3.93 5.11 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142, 150 $445,440 $542, 450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,880 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,00 98,300 93,600 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (dreturn on total assets, and 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. 3 Required information Problem 13-5A 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 Kyan Barco Kyan Company Company Data from the current year-end balance sheets Company Company Data from the current year's income statement Assets Sales $770,000 $880,200 Cash $ 19,500 $ 34,00 Cost of goods sold 585, 100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7.900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,820 24,380 Prepaid expenses 5,000 6,950 Net income 162,200 210,480 Plant assets, net 290,000 304,400 Basic earnings per share 4.51 5.11 Total assets $445,440 $542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 61,340 $ 93,300 Accounts receivable, net $ 29,800 $ 54,200 Long-term notes payable 89,800 101,800 Merchandise inventory 55,600 107,400 Common stock, $5 par value 180,000 206,000 Total assets 398,00 382,500 Retained earnings 123,300 142, 150 Common stock, $5 par value 180,000 206,000 $445,440 $542,450 98,300 Total liabilities and equity Retained earnings 93,600 oblem 13-5A Part 2 For both companies compute the (a) profit margin ratio. (b) total asset turnover, (q) return on total assets, and (c) return on common ockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios d (dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) -. Identify which company's stock you would recommend as the better investment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Tum Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on common stockholders' equity. Company Return On Common Stockholders' Equity Choose Denominator Choose Numerator: Net Income Preferred dividends 162.200 210.400 Barco Kyan 07 Average common stockholders' equity 110,800 - 174,075 - Return On Common Stockholders' Equity Return on common stockholders' equity 146.4 120.9 % 0 Return Required information Problem 13-5A 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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,480 Total assets $445,440 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $880, 200 Cost of goods sold 585,100 632,500 Interest expense 7.900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 61,340 $ 93,300 Accounts receivable, net 88,888 101,880 Merchandise inventory 180,000 286,800 Total assets 123,300 142,150 Common stock, $5 par value $445, 440 $542,450 Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,680 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (dreturn on total assets, and (c) return on common tockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios ind ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) eb. Identify which company's stock you would recommend as the better investment. Return to Problem 13-5A Part 2 2a. 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on common stockholders' equity. (d) Company Choose Numerator: Preferred Net income dividends 162,200 210,400 Return On Common Stockholders' Equity Choose Denominator Average common stockholders' equity 01 110,800 01 174,075 Return On Common Stockholders' Equity Return on common stockholders' equity 146.4 % 120.9 % Barco Kyan 2A Reton Tot Assets 2A Price Earn Ratio > Prev Sm of 3 !!! Next
