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 Data from the current year's balance sheets income statement Assets Sales $770,000 Cash $ 21,500 $ 38,000 Cost of goods sold Accounts receivable, net 36,400 54,400 Interest expense 586,100 9,300 $ 901,200 634,500 19,000 84,540 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 5,400 340,000 $ 487,840 $ 542,600 $ 62,340 $ 103,300 81,800 190,000 153,700 117,000 246,000 76,300 $ 487,840 $ 542,600 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings 138,500 Income tax expense 14,800 24,879 7,300 304,400 Net income 159,800 222,821 Basic earnings per share 4.21 4.53 3.73 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 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 Ratio Turn Assets Equity For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: 2A Price Earn 2A Div Yield Req 2B Ratio Profit Margin Ratio Denominator: Profit margin ratio Profit margin ratio = % % < 2A Prof Mar Ratio 2A Tot Asset Turn > ! 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 Cash $ 21,500 $ 38,000 Cost of goods sold Accounts receivable, net 36,400 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 84,540 5,400 340,000 $ 487,840 $ 542,600 $ 62,340 $ 103,300 81,800 190,000 153,700 Cash dividends per share. Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets 117,000 246,000 76,300 $ 487,840 $ 542,600 Common stock, $5 par value Retained earnings 54,400 138,500 7,300 Interest expense $770,000 586,100 9,300 $ 901,200 634,500 Income tax expense 14,800 19,000 24,879 Net income 159,800 222,821 304,400 Basic earnings per share 4.21 4.53 3.73 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 per share, compute their (e) price-earnings ratios and (1) 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 2A Ret On Ratio Assets Equity 2A Price Earn 2A Div Yield Ratio Req 2B For both companies compute the total asset turnover (b) Company Numerator: Barco Kyan Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover times times < 2A Prof Mar Ratio 2A Ret on Tot Assets > ! 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 Data from the current year's balance sheets income statement Assets Sales Cash $ 21,500 $ 38,000 Cost of goods sold $770,000 586,100 $ 901,200 634,500 Accounts receivable, net 36,400 54,400 Interest expense 9,300 19,000 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 84,540 5,400 340,000 $ 487,840 $ 542,600 $ 62,340 $ 103,300 81,800 190,000 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets 117,000 246,000 153,700 76,300 Total liabilities and equity $ 487,840 $ 542,600 Common stock, $5 par value Retained earnings 138,500 Income tax expense 14,800 24,879 7,300 304,400 Net income 159,800 222,821 Basic earnings per share 4.21 3.73 4.53 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 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 Req 2B Ratio For both companies compute the return on total assets. (c) Company Barco Kyan Numerator: Return on Total Assets Denominator: = Return on Total Assets Return on total assets = % % < 2A Tot Asset Turn 2A Ret On Equity > ! 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 $ 901,200 Cash Accounts receivable, net $ 21,500 36,400 $ 38,000 Cost of goods sold 586,100 634,500 84,540 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 5,400 340,000 $ 487,840 $ 542,600 $ 62,340 $ 103,300 81,800 190,000 153,700 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory 117,000 246,000 Total assets 76,300 $ 487,840 $ 542,600 Common stock, $5 par value Retained earnings 54,400 138,500 7,300 Interest expense 9,300 19,000 Income tax expense 14,800 24,879 Net income 159,800 222,821 304,400 Basic earnings per share 4.21 4.53 3.73 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 per share, compute their (e) price-earnings ratios and (1) 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 2A Ret On Ratio For both companies compute the return on equity. Assets Equity 2A Price Earn 2A Div Yield Ratio Req 2B (d) Company Numerator: Barco Kyan Return On Equity Denominator Return On Equity Return On equity % % < 2A Ret on Tot Assets 2A Price Earn Ratio > ! 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 Data from the current year's balance sheets income statement Assets Sales Cash $ 21,500 $ 38,000 Cost of goods sold Accounts receivable, net 36,400 54,400 Interest expense $770,000 586,100 9,300 $ 901,200 634,500 19,000 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 84,540 5,400 340,000 $ 487,840 $ 542,600 $ 62,340 $ 103,300 81,800 190,000 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets 117,000 246,000 153,700 76,300 $ 487,840 $ 542,600 Common stock, $5 par value Retained earnings 138,500 Income tax expense 14,800 24,879 7,300 Net income 159,800 222,821 304,400 Basic earnings per share 4.21 4.53 3.73 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 per share, compute their (e) price-earnings ratios and (1) 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 Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. (f) Company Barco Kyan Numerator: Dividend Yield Denominator: Dividend Yield Dividend yield = % % < 2A Price Earn Ratio Req 2B > ! 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 Cash $ 21,500 $ 38,000 Cost of goods sold Accounts receivable, net. 36,400 54,400 Interest expense 586,100 9,300 $ 901,200 634,500 19,000 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 84,540 5,400 340,000 $ 487,840 $ 542,600 $ 62,340 $ 103,300 81,800 190,000 153,700 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets 117,000 246,000 76,300 $ 487,840 $ 542,600 Common stock, $5 par value Retained earnings 138,500 7,300 Income tax expense 14,800 Net income 159,800 24,879 222,821 304,400 Basic earnings per share 4.21 4.53 3.73 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 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 2A Ret On Ratio Assets Equity Ratio 2A Price Earn 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment < 2A Div Yield Req 2B > 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 Data from the current year's balance sheets income statement Assets Sales Cash Accounts receivable, net 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 $ 21,500 36,400 84,540 5,400 340,000 $ 487,840 $ 542,600 Cash dividends per share Beginning-of-year balance sheet Accounts receivable, net Merchandise inventory data $ 62,340 $103,300 81,800 117,000 246,000 153,700 76,300 Total liabilities and equity $ 487,840 $ 542,600 Common stock, $5 par value Retained earnings 190,000 Total assets $ 38,000 Cost of goods sold 54,400 138,500 Interest expense $770,000 586,100 9,300 $ 901,200 634,500 19,000 Income tax expense 14,800 24,879 7,300 Net income 159,800 222,821 304,400 Basic earnings per share 4.21 4.53 3.73 3.97 $ 27,800 $ 56,200 57,600 115,400 438,000 372,500 190,000 246,000 135,640 48,803 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 $100 per share, compute their (e) price-earnings ratios and (1) 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 2A Ret On Ratio 2A Price Earn 2A Div Yield Req 2B Assets Equity Ratio Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. (e) Company Barco Kyan Price-Earnings Ratio Numerator: 1 Denominator: 1 1 1 Price-Earnings Ratio Price-earnings ratio = 0 times 0 times < 2A Ret On Equity 2A Div Yield >