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 Sales $ 770,000 Prepaid expenses Cash Accounts receivable, net $ 22,000 35,400 $ 34,000 Merchandise inventory 84,540 Plant assets, net 5,800 350,000 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 497,740 $ 532,950 $ 60,340 $ 96,300 79,800 190,000 167,600 111,000 226,000 Total assets 99,650 Total liabilities and equity $ 497,740 $ 532,950 Common stock, $5 par value Retained earnings 53,400 134,500 7,650 303,400 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 593,100 7,800 $ 911,200 650,500 18,000 14,800 25,155 154,300 4.06 3.79 217,545 4.81 3.99 $ 28,800 $ 51,200 61,600 113,400 428,000 392,500 190,000 226,000 157,320 62,453 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and (f) dividend yields. 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 Equity For both companies compute the profit margin ratio. Ratio (a) Company Profit Margin Ratio Numerator: Denominator: Net income / Net sales Barco Kyan 2A Div Yield Req 2B Profit margin ratio = Profit margin ratio = 0% 0% 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 Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets $ 770,000 $ 911,200 593,100 7,800 650,500 18,000 Cash Accounts receivable, net $ 22,000 35,400 $ 34,000 53,400 Merchandise inventory 84,540 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 5,800 350,000 303,400 $ 497,740 $ 532,950 $ 60,340 79,800 190,000 167,600 $ 96,300 111,000 226,000 134,500 7,650 99,650 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 Total assets Common stock, $5 par value Retained earnings Total liabilities and equity $ 497,740 $ 532,950 14,800 25,155 154,300 217,545 4.06 3.79 4.81 3.99 $ 28,800 $ 51,200 61,600 113,400 428,000 392,500 190,000 226,000 157,320 62,453 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and (f) dividend yields. 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 Equity For both companies compute the total asset turnover Ratio (b) Company Numerator: Total Asset Turnover Denominator: Net sales Average total assets Barco Kyan 2A Div Yield Req 2B Total Asset Turnover = Total asset turnover = 0 times = 0 times ! 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 Sales $ 770,000 $ 911,200 Merchandise inventory Prepaid expenses Cash Accounts receivable, net $ 22,000 35,400 $ 34,000 84,540 Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 497,740 $ 60,340 $ 96,300 111,000 226,000 99,650 Total liabilities and equity $ 497,740 $ 532,950 79,800 190,000 167,600 5,800 350,000 53,400 134,500 7,650 303,400 $ 532,950 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 Total assets Common stock, $5 par value Retained earnings 593,100 7,800 650,500 18,000 14,800 25,155 154,300 217,545 4.06 3.79 4.81 3.99 $ 28,800 $ 51,200 61,600 113,400 428,000 392,500 190,000 226,000 157,320 62,453 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn 2A Div Yield Ratio Req 2B For both companies compute the return on total assets. Return on Total Assets (c) Company Numerator: 1 Denominator: Return on Total Assets Net income Average total assets = Return on total assets Barco = 0% Kyan 0% ! 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 Sales $ 770,000 $ 911,200 Cash $ 22,000 $ 34,000 Accounts receivable, net 35,400 Merchandise inventory 84,540 Prepaid expenses Plant assets, net 593,100 7,800 650,500 5,800 350,000 53,400 134,500 7,650 303,400 $ 532,950 Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 497,740 $ 60,340 $ 96,300 111,000 226,000 99,650 Total liabilities and equity $ 497,740 $ 532,950 79,800 190,000 167,600 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 Total assets Common stock, $5 par value Retained earnings 18,000 14,800 25,155 154,300 217,545 4.06 3.79 4.81 3.99 $ 28,800 $ 51,200 61,600 113,400 428,000 392,500 190,000 226,000 157,320 62,453 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and (f) dividend yields. 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 Equity For both companies compute the return on equity. Ratio 2A Div Yield Req 2B (d) Company Numerator: Return On Equity Denominator Net income End of year common stockholders' equity = Barco Kyan Return On Equity Return On equity 0% 0% 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 Equity Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $95 per share, compute their price-earnings ratios. Price-Earnings Ratio (e) Company Numerator: Denominator: Price-Earnings Ratio Market price per common share Earnings per share Price-earnings ratio Barco Kyan 1 = 0 times 1 = 0 times Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On 2A Price Earn Equity Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $95 per share, compute their dividend yields. (f) Company Dividend Yield Numerator: Denominator: = Dividend Yield Annual cash dividends per share Market price per share = Dividend yield Barco = 0% Kyan 0%