Required information 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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current years income statement Sales $770,000 $886,200 583,100 638,500 8,100 13,000 14,800 24,465 164,000 210,235 10 3.93 $18,500 $ 31,000 Cost of goods sold 38,400 51,400 Interest expense 9,000 8,400 Income tax expense 84,640 130,500 Net income 5,100 7,650 Basic earnings per share 5.12 3.73 340,000 308,400 Cash dividends per share $495,640 $537,350 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $27,800 52,200 $ 63,340 $ 93,300 Current notes receivable (trade) 86,800 117,000 Merchandise inventory 160, 000 206,000 Total assets 185,500121,050 Common stock, $5 par value 57,600 107,400 438,000 422,500 160,000 206,000 140,860 72,731 $495, 640 $537,350 Retained earnings Problem 13-5 Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) price- earnings ratios and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. ldentify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below 2A Ret On2A Price Earn Com Stock 2A Pro Marg2A Tot Asset 2A Ret on Tot Turn 2A Div Yield Req 2B Ratio Ratio Assets UI For both companies compute the profit margin ratio Profit Margin Ratic Choose Denominator: CompanyChoose Numerator: Profit margin ratio Profit margin ratio Barco 01% Kyan 01% 2A Tot Asset Turn> 2A Pro Marg Ratio Problem 13-5 Part 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 $80 per share, compute their (e) price- earnings ratios and (j 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 Ret On On Com Stock 2A Ret on Tot Assets 2A Price Earn 2A Pro Marg Ratio 2A Tot Asset | 2A Div Yield Req 2B Turn Ratio Equity For both companies compute the total asset turnover TotalAsset Turnover Company Choose Numerator: Choose Denominator: = Total Asset Turnover Total asset tumover 0 times 0 times Barco Kyan 2A Pro Marg Ratio 2A Ret on Tot Assets > 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 $80 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 2A Tot Asset 2A Ret on Tot2A Ret On Com Stock Equity 2A Div Yield Req 2B Ratio Turn Assets Ratio For both companies compute the return on total assets. Return on Total Assets Company Choose Numerator: Choose Denominator: - Return on Total Assets Return on total assets 01%! 0196| Barco Kyan 2A Ret On Com Stock Equity> 2A Tot Asset Turn
