Problem 13-5A Comparative ratio analysis LO A1, 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

CompanyKyan

CompanyBarco

CompanyKyan

CompanyData from the current year-end balance sheetsData from the current year's income statementAssetsSales$810,000$886,200Cash$19,500$38,000Cost of goods sold589,100644,500Accounts receivable, net37,40050,400Interest expense8,50014,000Current notes receivable (trade)9,9007,600Income tax expense15,56924,465Merchandise inventory84,640130,500Net income196,831203,235Prepaid expenses5,6006,950Basic earnings per share5.794.50Plant assets, net300,000306,400Cash dividends per share3.753.97Total assets$457,040$539,850Beginning-of-year balance sheet dataLiabilities and EquityAccounts receivable, net$29,800$53,200Current liabilities$71,340$96,300Current notes receivable (trade)00Long-term notes payable85,800105,000Merchandise inventory61,600111,400Common stock, $5 par value170,000226,000Total assets378,000362,500Retained earnings129,900112,550Common stock, $5 par value170,000226,000Total liabilities and equity$457,040$539,850Retained earnings60,56988,759