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 Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445, 440 $542,450 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $880,200 cost of goods sold 585,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 24,300 Net income 162,200 210,400 Basic earnings per share 4.51 | 5.11 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142, 150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term -------------- For both companies compute the acid-test ratio. Acid-Test Ratio . (b) Company Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Cash + Short-term investments + Current receivables 1 Current liabilities = Barco 19,500 + 61,340 + 34,000 Kyan A 93,300 + LLLLLLLLLLLLLLL 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn ' Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratio (e) Price-Earnings Ratio Choose Denominator: Company Choose Numerator: Price-Earnings Ratio Price-Earnings Ratio Barco times Kyan times 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Dividend Yield Company Choose Numerator: Choose Denominator: Dividend Yield Barco Dividend Yield O % 0 % Kyan Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Total Asset Turnover Choose Denominator: Company I - Choose Numerator: Net sales Average total assets Total Asset Turnover Total asset turnover 0 times IN Barco IN Kyan times Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets ----------------- 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. (C) Company Return on Total Assets Choose Denominator: Choose Numerator: 1 - Return on Total Assets Barco Return on total assets 0 % 0 % Kyan
