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 $ 35,000 Accounts receivable, net 40,400 58,400 Current notes receivable (trade) 9,800 8,600 Merchandise inventory 84,940 134,500 Prepaid expenses 5,800 6,980 Plant assets, net 330,000 310,400 Total assets $490,440 $553,800 Barco Kyan Company Company Data from the current year's income statement Sales $see,000 $913,200 Cost of goods sold 586.100 640500 Interest expense 7,900 12,600 Income tax expense 15,377 25 211 Net Income 190,623 235,489 Basic earnings per share 4.33 4.99 Cash dividends per share 3.73 3.96 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 62,340 $104,300 83,800 111,000 220,00 236,000 124,300 102,500 $ 490,440 $553,800 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 55200 @ 59,600 105 400 418,000 412,500 220,000 236000 97,797 53,923 20. 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 share and each company's stock can be purchased at $95 per share, compute their (el 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 Ret On Com Stock Equity 2A Pro Maro Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the profit margin ratio. 84,940 134,500 5,800 6,900 330,000 310,400 $490, 440 $553,800 Net income Basic earnings per share Cash dividends per share Merchandise Inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $104,300 83,800 111,000 220,000 236,000 124,300 102,500 $490, 440 5553,800 Beginning-of-year balance sheet dat Accounts receivable, net Current notes receivable (trade) Merchandise Inventory Total assets Common stock, 55 par value Retained earnings 2n. For both companies compute the (a) profit margin ratio. (b) total asset turnover, I return on total assets, ar stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, com earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 de 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 ZA Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On Com Stock Ratio Turn Assets Equity For both companies compute the profit margin ratio. Profit Margin Ratio Company Choose Numerator: Choose Denominator: - Profit margin ratio - Profit margin ratio Barco - Kyan 1 2A Tot Asset Turn >
