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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

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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 $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542, 450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $880,200 Cost of goods sold 585,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 5.11 Cash dividends per share 3.81 3.93 | Beginning-of-year balance sheet data Accounts receivable, net $ 29,800 54,200 Merchandise inventory 55,600 107,400 Total assets 398,000 382,500 Common stock, 65 par value 180,000 206,000 Retained earnings 98,300 93,600 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total 11abilities and equity $ 61,340 $ 93,300 80, 800 101,000 180,000 206,000 123,300 142, 150 $445,440 $542,450 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (d) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 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 Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio ZA Div Yield Reg 2B For both companies compute the profit margin ratio. Profit Margin Ratio Company Choose Numerator: Choose Denominator: Profit margin ratio -Profit margin ratio 1 Barco Kyan 1 2A PRIMERA 2A Tot Asset Turn > 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 each company's stock can be purchased at $75 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A DIV Yield Reg 28 For both companies compute the total asset turnover (b) Total Asset Tumover Company Choose Numerator: Choose Denominator Total Asset Turnover Total asset turnover times times Barco Kyan 2A Prof Mar Ratio 2A Ret on Tot Assets > 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 each company's stock can be purchased at $75 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 Div Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 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 Retum 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 (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 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 Reton Tot Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A DIV Yield Reg 20 For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity Company Choose Numerator: Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity % Barco Kyan 1 1 % 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 each company's stock can be purchased at $75 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 Ratio Turn Assets Com Stock Ratio 2A Div Yield Reg 28 Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: = Price-Earnings Ratio Price-Earnings Ratio Barco times Kyan 1 1 times HIT 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 each company's stock can be purchased at $75 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 Yield 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Com Stock Ratio Reg 28 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Dividend Yield Company Choose Numerator: Choose Denominator: Dividend Yield Dividend Yield Barco Kyan

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