Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Company Kyan Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Sales Assets $780,000 $924, 200 Cash $ cost of goods sold 586,100 646,500 21,500 $ 32,000 33,400 Accounts receivable, net 59,400 Interest expense 8,300 15,000 Merchandise inventory 14,992 25,514 84,440 130,500 5,800 7,750 Income tax expense Net income Prepaid expenses Plant assets, net 170,608 237,186 4.27 350,000 306,400 Basic earnings per share 5.76 Total assets $495,140 $536, 050 Cash dividends per share 3.77 3.95 Liabilities and Equity Current liabilities. Long-term notes payable Common stock, $5 par value Retained earnings Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory $ 68,340 $ 95,300 78,800 113,000 200,000 206,000 Total assets 148,000 121,750 Common stock, $5 par value $495,140 $536,050 Retained earnings $ 31,800 $ 51,2001 61,600 107,400 418,000 392,500 200,000 206,000 128,192 47,304 Total liabilities and equity a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common tockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios nd ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. 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 2A Div Yield 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock Req 20 Ratio For both companies compute the profit margin ratio. (a) Profit Margin Ratio Choose Denominator: Company Choose Numerator: Profit margin ratio -Profit margin ratio Barco Kyan 0% ZA Prof Mar Ratio 2A Tot Asset Turn > I 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 Barco Kyan Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Sales Assets $780,000 $924, 200 Cash 586,100 646,500 Accounts receivable, net Cost of goods sold Interest expense Income tax expense Net income 8,300 15,000 $ 21,500 $32,000 33,400 59,400 84,440 130,500 5,800 7,750 350,000 306,400 14,992 Merchandise inventory Prepaid expenses 25,514 170,608 237,186 Plant assets, net Basic earnings per share 4.27 5.76 Total assets $495,140 $536,050 Cash dividenda per share 3.77 3.95 Liabilities and Equity Current liabilities $ 31,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 68,340 $ 95,300 78,800 113,000 200,000 206,000 148,000 121,750 $495,140 $536,050 Long-term notes payable. Common stock, $5 par value Retained earnings 61,600 418,000 200,000 $ 51,200 107,400 392,500 206,000 Common stock, $5 par value Retained earnings Total liabilities and equity 128, 192 47,304 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 $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 Price Earn 2A Div Yield 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock Req 28 Ratio For both companies compute the total asset turnover Total Asset Turnover (b) Company Choose Numerator: Choose Denominator: Barco Kyan 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 Data from the current year's income statement Sales $780,000 $924, 200 Cash 586,100 646,500 Accounts receivable, net 8,300 15,000 $ 21,500 $32,000 33,400 59,400 84,440 130,500 5,800 7,750 350.000 306,400 Cost of goods sold Interest expense Income tax expense Net income 14,992 Merchandise inventory Prepaid expenses Plant assets, net 25,514 170,608 237,186 Basic earnings per share 4.27 5.76 Total assets $495,140 $536, 050 Cash dividenda per share 3.77 3.95 Liabilities and Equity Current liabilities $ 31,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 51,200 107,400 Long-term notes payable 61,600 $ 68.340 $ 95,300 78,800 113,000 200,000 206,000 148,000 121,750 $495,140 $536,050 418,000 Common stock, $5 par value Retained earnings 392,500 200,000 206,000 Common stock, $5 par value Retained earnings Total liabilities and equity 128,192 47,304 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 $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 Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn 2A Ret On 2A Price Earn 2A Div Yield Com Stock Req 28 Assets Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Choose Numerator: Choose Denominator: Return on Total Assets Return on total assets Barco Kyan 1 11 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 Barco Kyan Company Kyan Company Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $750,000 $924,200 Cash 586,100 646,500 Accounts receivable, net $ 21,500 $ 32,000 33,400 8,300 15,000 Cost of goods sold 59,400 Interest expense 130,500 Income tax expense 7,750 Net income Merchandise inventory 84,440 14,992 25,514 170,608 237,196 Prepaid expenses Plant assets, net Total assets 5,800 350,000 306,400 Basic earnings per share 4.27 5.76 $495,140 $536, 050 Cash dividends per share 3.77 3.95 Liabilities and Equity Current liabilities $ 31,800 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 68,340 $ 95,300 78,800 113,000 200,000 206,000 148,000 121,750 $495,140 $536,050 Retained earnings Long-term notes payable Common stock, $5 par value Retained earnings $ 51,200 61,600 107,400 418,000 392,500 200,000 206,000 128, 192 47,304 Common stock, $5 par value Total liabilities and equity 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 $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 Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn 2A Div Yield Ratio Reg 28 For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity Choose Denominator Company Choose Numerator: - Return On Common Stockholders' Equity Return On common stockholders' equity 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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $780,000 $924, 200 Cash Cost of goods sold 586,100 646,500 Accounts receivable, net 8,300 15,000 $ 21,500 $32,000 33,400 59,400 84,440 130,500 5,800 350,000 Interest expense Income tax expense Net incone 14,992 25,514 7,750 170,608 Merchandise inventory Prepaid expenses Plant assets, net Total assets 237,186 306,400 Basic earnings per share. 4.27 5.76 $495,140 $536,050 Cash dividends per share 3.77 3.95 Liabilities and Equity Current liabilities $31,800 $ 51,200 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 68,340 $ 95,300 78,800 113,000 200,000 206,000 148,000 121,750 $495,140 $536,050 Long-tern notes payable Common stock, $5 par value Retained earnings Common stock, 55 par value Retained earnings 61,600 107,400 418,000 392,500 200,000 206,000 47,304 Total liabilities and equity 128,192 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 $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. ZA Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Com Stock 2A Price Earn 2A Div Yield Req 28 Turn Ratio Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios. Price-Earnings Ratio Company Choose Numerator: / Choose Denominator: Price-Earnings Ratio Price-eamings ratio Barco Kyan 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 Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Sales Assets $780,000 Cash 586,100 $924, 200 646,500 15,000 Accounts receivable, net 8,300 Merchandise inventory $ 21,500 $ 32,000 33,400 59,400 84,440 130,500 5,800 7,750 350,000 306,400 Cost of goods sold Interest expense Income tax expense Net income 14,992 25,514 170,608 237,186 Prepaid expenses Plant assets, net 4.27 5.76 Basic earnings per share Cash dividends per share Total assets $495,140 $536, 050 3.77 3.95 $ 31,800 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 51,200 107,400 $ 68,340 $ 95,300 78,800 113,000 200,000 206,000 148,000 121,750 $495, 140 $536,050 61,600 418,000 392,500 200,000 206,000 Common stock, $5 par value. Retained earnings Total liabilities and equity 128, 192 47,304 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return on common stockholders' equity. Assuming that 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. ZA Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On 2A Price Earn Com Stock Ratio 2A Div Yield Req 28 Assuming that each company's stock can be purchased at $90 per share, compute their dividend yields. Dividend Yield Company Choose Numerator: Choose Denominator: Dividend Yield Dividend yield Barco 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 Kyan Barco Kyan Company Company Company Conpany Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $780,000 $924,200 Cash $ 21,500 $32,000 cost of goods sold 586,100 646,500 Interest expense 8,300. 15,000 Accounts receivable, net Merchandise inventory Prepaid expenses 33,400 84,440 59,400 130,500 7,750 14,992 25,514 Income tax expense Net income. 5,800 170,608 237,186 4.27 Plant assets, net 350,000 306,400 Basic earnings per share. 5.76 Total assets $495,140 $536, 050 Cash dividends per share 3.77 3.95 1 Liabilities and Equity Current liabilities Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory $ 31,800 $ 51,200 Long-term notes payable Common stock, $5 par value Retained earnings Total assets $ 68,340 $ 95,300 78,800 113,000 200,000 206,000 148,000 121,750 $495,140 $536,050 Common stock, $5 par value Retained earnings 61,600 107,400 418,000 392,500 200,000 206,000 128,192 47,304 Total liabilities and equity 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 $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 Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn 2A Div Yield Req 28 Ratio Identify which company's stock you would recommend as the better investment. The better investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

2nd Edition

1408017725, 978-1408017722

More Books

Students also viewed these Accounting questions

Question

Describe three of Fechners psychophysical methods.

Answered: 1 week ago