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I need help with 2a Please Required information (The following information applies to the questions displayed below.) Summary information from the financial statements of two
I need help with 2a Please
Required information (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, ne Merchandise inventory Prepaid expenses Plant assets, net $ 19,000 37,400 84,740 5,500 310,000 $ 456,640 $ 36,000 52,400 138,500 7,450 311,400 $ 545,750 $ 770,000 587,100 8,000 14,800 160,100 3.64 $ 911,200 640,500 16,000 25,155 229,545 5.08 Total assets 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 3.81 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 79,800 220,000 95,500 $ 456,640 $ 91,300 103,000 226,000 125, 450 $ 545,750 $ 27,800 63,600 408,000 220,000 103,040 $ 56,200 115,400 382,500 226,000 76,705 2a. For both companies compute the (a) 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 $95 per share, compute their (e) price-earnings ratios and (1) 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 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover Total Asset Turnover (b) Company Numerator: Net sales Denominator: = Total Asset Turnover = = | Average total assets II Total asset turnover Barco 770,000 0 times Kyan 1 II 0 timesStep by Step Solution
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