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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
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 Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Cash $ 20,000 $ 31,000 Accounts receivable, net 40,400 53,400 Merchandise inventory 84,640 138,500 Prepaid expenses Plant assets, net 5,400 330,000 Current liabilities Total assets Liabilities and Equity Long-term notes payable Common stock, $5 par value Retained earnings $ 65,340 82,800 210,000 122,300 $ 480,440 $ 537,200 $ 97,300 111,000 6,900 307,400 Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory $ 810,000 $ 896,200 584,100 8,700 638,500 19,000 15,569 24,741 201,631 4.80 3.79 213,959 4.73 3.98 226,000 Total assets 102,900 Total liabilities and equity $ 480,440 $ 537,200 Common stock, $5 par value Retained earnings $ 28,800 $ 56,200 55,600 117,400 458,000 382,500 210,000 226,000 79,849 68,837 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 each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and ( dividend yields. Note: Do not round Intermediate calculations. Round your answers to 2 decimal places.
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