Next Question:

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 Company Company Data from the current year-end balance sheets Assets Cash $ 21,000 $ 35,000 Accounts receivable, net 35, 400 60,400 Current notes receivable (trade) 9,300 .8,600 Merchandise inventory 84,340 130,500 Prepaid expenses 5, 2006 ,900 Plant assets, net 350,000 304,400 Total assets $505, 240 $545,800 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $887,200 Cost of goods sold 595,100 648,500 Interest expense 8,200 14,000 Income tax expense 15,569 24,493 Net income 191,131 200, 207 Basic earnings per share 4.78 5.11 Cash dividends per share 3.73 3.98 $ 32,800 $ 58,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $101,300 82,800 103,000 200,000 196,000 162,100 145,500 $505, 240 $545, 800 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 59,600 438,000 200,000 120,169 107,400 392,500 196,000 101,309 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 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. Complete this question by entering your answers in the tabs below. 2A Price Earn 2A Pro Marg Ratio ZA Tot Asset Tum 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Div Yield Req 2B Ratio For both companies compute the profit margin ratio. Profit Margin Ratio Choose Denominator: Company Choose Numerator: Profit margin ratio Profit margin ratio Barco Kyan 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 share and each company's stock can be purchased at $90 per share, compute their (e) price- earnings ratios and (1dividend 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. Complete this question by entering your answers in the tabs below. 2A Ret On 2A Price Earn 2A Div Yield Reg 2B Ratio 2A Pro Marg2A Tot Asset 2A Ret on Tot Com Stock Ratio Turn Assets Equity For both companies compute the total asset turnover Total Asset Turnover 1 Choose Denominator: Company Choose Numerator: = Total Asset Turnover Total asset turnover 0 times Barco Kyan 0 times Check my world 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 share and each company's stock can be purchased at $90 per share, compute their (e) price- earnings ratios and (1) 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. Complete this question by entering your answers in the tabs below. 2A Price Earn Ratio 2A Div Yield Reg 2B 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On Com Stock Ratio Turn Assets Equity For both companies compute the return on total assets. Return on Total Assets I Choose Denominator: Company Choose Numerator: = Return on Total Assets Return on total assets Barco Kyan 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 share and each company's stock can be purchased at $90 per share, compute their (e) price- earnings ratios and 1 dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) entity which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot 32A Ret On Turn Assets Com Stock Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on common stockholders' equity. (d) Company Choose Numerator: Return On Common Stockholders' Equity Choose Denominator = Return On Common Stockholders' Equity = Retum On common stockholders' equity Barco Kyan of 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 share and each company's stock can be purchased at $90 per share, compute their (el price earnings ratios and (1) 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. Complete this question by entering your answers in the tabs below. nces 2A Ret On 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Price Earn Com Stock 2A Diy Yield Reg 28 Ratio Turn Assets Ratio Equity Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios. Price-Earnings Ratio Company Choose Numerator: Choose Denominator: - Price-Earnings Ratio = Price-earnings ratio O times Barco O times Kyan le) 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (dreturn on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 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. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets ZA Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that share and each company's stock can be purchased at $90 per share, compute their dividend yields. Dividend Yield Choose Denominator: Company Choose Numerator Dividend Yield Dividend yield 0 % Barco Kyan 0 % SA D E Ratio 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 share and each company's stock can be purchased at $90 per share, compute their (e) price earnings ratios and 1 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. Complete this question by entering your answers in the tabs below. Reg 2B 2A Ret On 2A Pro Marg ZA Tot Asset 2A Ret on Tot ZA Price Earn Com Stock 2A Div Yield Ratio Turn Assets Ratio Equity Identify which company's stock you would recommend as the better investment The better investment Sales Cost of goods sold Accounts receivable 2017 2016 2015 2014 2013 $ 551,782 $ 360,642 $ 296,825 $ 209,032 $ 153,700 267,305 174,758 145,976 102,035 73, 776 26,596 21,025 20,362 12,270 10,513 Compute trend percents for the above accounts, using 2013 as the base year. Trend Percent for Net Sales: 1 Choose Denominator: Choose Numerator: Sales 2017: 2016: 2015: 2014: Trend Percent for Cost of Goods Sold: 1 Choose Denominator: Choose Numerator: Cost of goods sold 2017: 2016: 2015: 2014: llllllll Trend Percent for Accounts Receivables: 2015: 2014: Trend Percent for Cost of Goods Sold: 1 Choose Denominator: Choose Numerator: Cost of goods sold 2017: 2016: 2015: 2014: Trend Percent for Accounts Receivables: Choose Denominator: Choose Numerator: Accounts receivable i 2017: 2016: 2015: 2014