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Kyan Barco Company Company Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant
Kyan Barco Company Company Barco Kyan 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 $881,200 584,100 648,500 11,000 14,99224,327 171,808 197,373 04 $ 18,500 34,000 Cost of goods sold 36,400 85,040 134,500 Income tax expense 54,400 Interest expense 9,100 6,100 7,500 Net income 320,000 307,400 Basic earnings per share $466, 040 $537,800 Cash dividends per share 5.37 3.80 3.95 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 $93,300Accounts receivable, net 28,800 56,200 57,600 107,400 448,000 392,500 160,000 196,000 108,692 100,967 Merchandise inventory 85,800 105,000 160,000 196,000 Total assets 158, 900143,500 Common stock, $5 par value $466, 040 $537,800 Retained earnings Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $85 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
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