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Is return on common stock equity correct? 0 Required Information The following information applies to the questions displayed below Summary information from the financial statements
Is return on common stock equity correct? 0 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 Kyan Barco Kyan Company Company Data from the eurrent yoar's income statement Sales Data fron the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assete $770,000 $903,200 586,100 650 500 7,800 12,000 14,000 24,935 161,300 215,765 3.67 4.99 3.97 s 22,000 36,000 Cost of goode sold 34,400 55,400 Interest expense ,3007,800Incone tax expense s,700 7,250 Basic earninge per share 84,240140,500 Net Lncome 3.78 $465,640 555,350 Beginning-of-year balance sheet data Accounts receivable, net s 28,800 53,200 Liabilities and Equity Current 1iabilities 70,340 $103,300 Current notes receivable (trade) 83,800 107,000 Merchandise inventory 220,000 216,000 Total assets 91,500129,050 Common stock, $5 par value 465,640 $555 350 Retained earnings 57,600 117 400 408, 000 402,500 220,000 216,000 96,52084,789 ong-term notes,payable Common stock, par value Retained earnings Total liabi1ities and equity
Is return on common stock equity correct?
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