O 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 Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $760,800 $891,200 Cash $ 19,580 $ 31,800 Cost of goods sold 584, 188 650 see Accounts receivable, net 39,480 56,400 Interest expense 8,990 16,080 Merchandise inventory 84,440 132,580 Income tax expense 14,608 246e3 Prepaid expenses 5,188 7,480 Net income 152,392 280,097 Plant assets, net 339, eee 396,400 Basic earnings per share 4.01 Total assets $478,448 $533,700 Cash dividends per share 3.78 4.81 1 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 60,349 $ 99,309 Accounts receivable, net 25,800 $ 52/200 Long-term notes payable 79,800 115, eee Merchandise inventory 55,600 107,400 Common stock, $5 par value 199,00 246,00 Total assets 418,eee 372 see Retained earnings 148, 380 23,400 Common stock, $5 par value 198,888 246,00 Total liabilities and equity $478,448 $533,798 Retained earnings 139,548 70595 4.87 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 (c) return on common stockholders' equity. Assuming that 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 Ratio 2A Div Yield Reg 28 Turn 2A Prof Mar ZA Tot Asset 2A Ret on Tot 2A Ret On Ratio Assets Com Stock For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Choose Numerator: 1 Choose Denominator Profit margin ratio = Profit margin ratio = 096 Barco Kyan = 0 % K2A Pro Radio 2A Tot Asset Turn > 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 Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $760,000 $891,200 Cash $ 19,500 $ 31, eee Cost of goods sold 584,180 650/500 Accounts receivable, net 39,480 56,499 Interest expense 8,999 16,80 Merchandise inventory 84,440 132,500 Income tax expense 14,688 24603 Prepaid expenses 5,18e 7,400 Net income 152,392 280,097 Plant assets, net 330,000 306,400 Basic earnings per share 4.81 4.07 Total assets $478,440 $533,788 Cash dividends per share 3.78 4.81 1 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 68,340 $ 99, 300 Accounts receivable, net $ 25,800 $ 52280 Long-term notes payable 79,see 115, eee Merchandise inventory 55,600 107, 4ee Common stock, $5 par value 198,080 246,000 Total assets 418,888 372 5ee Retained earnings 148, 380 73,400 Common stock, $5 par value 198, 246,00 Total liabilities and equity $478,440 $533,708 Retained earnings 139,548 70 595 Problem 13-5A Part 2 2. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (6 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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Com Stock 2A Div Yield Ratio Reg 2B For both companies compute the total asset turnover (b) Total Asset Turnover Company Choose Numerator: 1 Choose Denominator: = Total Asset Turnover Total asset turnover Barco 1 O times Kyan Otimes 2o. 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 $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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Reg 2B Ratio Turn Assets Com Stock Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Choose Numerator: . Choose Denominator: = Return on Total Assets Return on total assets Barco 0 % Kyan 0 % 2A Tot Asset Turn 2A Ret On Com Stock > Problem 13-5A Part 2 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (c) return on total assets, and (c) return on common stockholders' equity. Assuming that 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 2A Div Vield Turn Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Assets Com Stock Ratio 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 = Return On common stockholders' equity 096 Barco 1 Kyan 0 % Problem 13-5A Part 2 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (c) return on total assets, and (c) return on common stockholders' equity. Assuming that 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 Div Vield 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Req 28 Com Stock Ratio Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios. (e) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: = Price-Earnings Ratio Price-earnings ratio Barco 0 times Kyan = = O times Problem 13-5A Part 2 2. For both companies compute the (a) profit margin ratio. (6) total asset turnover. (c) return on total assets, and (c) return on common stockholders' equity. Assuming that 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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Vield Reg 28 Ratio Turn Assets Com Stock Ratio Assuming that each company's stock can be purchased at $90 per share, compute their dividend yields. Dividend Yield Company Choose Numerator: Choose Denominator: = Dividend Yield = Dividend yield Barco 096 Kyan = 096 2A Price Eam Ratio Req 28 > Problem 13-5A Part 2 2e. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (c) return on total assets, and (c) return on common stockholders' equity. Assuming that 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 Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Assets 2A Ret On Com Stock ZA Price Earn 2A Div Vield Reg 28 Turn Ratio Identify which company's stock you would recommend as the better investment. The better investment A Div Yield Renze Barco company Kyan company