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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
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 Barco Kyan Company Company Company Company Data from the current year-end balance sheets AssetS Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $790,000 $923,200 586,100 634,500 8,500 19,000 15,185 25,487 180,215 244,213 40 3.99 22,500 33,000 Cost of goods sold 35,400 57,400 Interest expense 9,700 7,600 Income tax expense 84,940 134,500 Net income 4.51 3.71 5,700 7,550 Basic earnings per share 310,000307,400 Cash dividends per share $468,240 $547,450 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes paya Common stock, $5 par value Retained earnings Total liabilities and equity 28,800 $55,200 67,340 96,300 Current notes receivable (trade) ble 81,800 111,000 Merchandise inventory 200,000 226,000 Total assets 119,100114,150 Common stock, $5 par value 61,600 117,400 398,000 382,500 200,000 226,000 87,285 50,285 $468,240 $547,450 Retained earnings 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 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 Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On Com 2A Price Earn Assets 2A Div Yield Req 2B Ratio Turn Stock Equity Ratio For both companies compute the profit margin ratio Profit Margin Ratio Company Choose Numerator: Choose Denominator:Profit margin ratio - Profit margin ratio Barco 01% Kyan 01% 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 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 Pro Marg 2A Tot Asset2A Ret on Tot 2A Ret On Com 2A Price Earn Assets 2A Div Yield Rq 2B Turn Stock Equity For both companies compute the total asset turnover Total Asset Turnover Company Choose Numerator: Choose Denominator: Total Asset Turnover Total asset turnover 0 times 0 times Barco Kyan 2A Pro Marg Ratio 2A Ret on Tot Assets> 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $90 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 Pro Marg 2A Tot Asset2A Ret on Tot 2A Ret On Com 2A Price Earn Assets 2A Div Yield Req 2B Ratio Turn Stock Equity Ratio For both companies compute the return on total assets Return on Total Assets Company Choose Numerator: Choose Denominator: Return on Total Assets Return on total assets Barco 01 % Kyan 01% 2A Tot Asset Turn 2A Ret On Com Stock Equity> Complete this question by entering your answers in the tabs below 2A Pro Marg 2A Tot Asset2A Ret on Tot 2A Ret On Com 2A Price Earn 2A Div Yield Req 2B Turn AssetsStock Equity For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity Return On Common Stockholders Company Choose Numerator: Choose Denominator = | Return on common stockholders' equity Barco 01% Kyan 01% 2A Ret on Tot Assets 2A Price Earn Ratio> Complete this question by entering your answers in the tabs below 2A Pro Marg 2A Tot Asset Turn 2A Price Earn2A Div Yield 2A Ret on Tot 2A Ret On Com Req 2B Assets Stock Equity Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios Price-Earnings Ratio I Choose Denominator: - Price-Earnings Ratio Price-eamings ratio Company Choose Numerator: 0 times 0 times Barco Kyan 2A Ret On Com Stock Equity 2A Div Yield> Complete this question by entering your answers in the tabs below 2A Pro Marg 2A Tot Asset Turn 2A Ret on Tot 2A Ret On Com 2A Price Earn Ratio 2A Div YieldReq 2B Ratio AssetsStock Equity Assuming that share and 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 01% 01% 2A Price Earn Ratio Req 2B > Complete this question by entering your answers in the tabs below 2A Pro Marg2A Tot Asset 2A Ret on Tot 2A Ret On Com 2A Price Earn 2A Div YieldReq 2B Ratio Turn AssetsStock Equity Ratio Identify which company's stock you would recommend as the better investment. The better investment
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