Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saved Barco Ayan Company Company Data from the current year-end balance sheets Assets Cast $ 19,000 S 35,000 Accounts receivable, net 39,400 55,400 Current notes

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Saved Barco Ayan Company Company Data from the current year-end balance sheets Assets Cast $ 19,000 S 35,000 Accounts receivable, net 39,400 55,400 Current notes receivable (trade) 9,800 17.800 Merchandise inventory 14,540 114,500 Prepaid expenses 5.800 7,400 Plant assets.net 350,000 309.400 Total assets $508,540 $549,500 BECO ayan Company Company Data from the current year's income statement Sales $ 790,000 $80, 200 Cost of goods sold 593, 100 630, 500 Interest expense 9,300 13,000 Income tax expense 15,185 24,500 Net Enece 172,415 212,400 Basie earnings per share 4.11 4.70 Cash dividends per share 3.80 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total Isabilities and equity $ 69,340 $100,300 83,800 121.000 210.000 226,000 145.000 132.100 $508,540 $549,500 Beginning-at-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory total asseta Cohon stock, Spar value Betained earnings $ 29,800 $ 51.200 61,600 105.400 408.000 192,500 210,000 226,00 112.585 77,436 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (d return on total assets, and return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, compute their le price- earnings ratios and dividend yields. (Do not round intermediate calculations, Round your answer ta decimal places) 2b. Identify which company's stock you would recommend as the better investment ices Complete this question by entering your answers in the tabs below. 2A Price Earn 2AD Yield Ratio Ra ? 2A Pro Marg ZA Tot Asset 2A Reson Tot 2A Raton Runds Com Stock Tum Assets Equity For both companies compute the profit margin ratio. Commor -Profit margin ratio Barco Kyan 2A Tal Assel Tur> 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (d) return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, compute their (e) price- earnings ratios and (1) 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 Ratio 2A Div Yield 2A Pro Marg 2A Tot Asset 2A Reton Tot 2A Ret On Ratio Turn Com Stock Assets Equity For both companies compute the total asset turnover Reg 28 b) Total Asset Turnover Company Choose Numerator: Choose Denominator: Net sales 7 Average total assets Barco 790,000 Kyan 880.2007 = Total Asset Turnover Total asset turnover O times O times Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity $ 69,340 $100,300 83,800 111,000 210,000 226,000 145,400 112,200 $508,540 $549,500 Account II Current notes receivable (trade) Merchandise inventory Total asset Common stock, $5 par value Retained earnings 61,600 400,000 210,000 132,585 105 39 220 7 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (return on total assets, and (creturn on commo stockholders' equity. Assuming that share and each company's stock can be purchased at $95 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 A Tot Asset 2A Reton Tot 2A Ret On 2A Price Earn Com Stock 2A Div Yield Reg 2B Ratio Turn Adsets Equity Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Choose Numerator: Choose Denominator: Return on Total Assets Net income Average total assets Return on total assets Barco 172.415/ 0 % Kyan 212,400 0% 2A Tot Asset Turn 2A Ret On Com Stock Equity > 3.80 Prepaid expenses Plant anneta, net Total awet Basie earnings per share Cash dividends per share 3.93 5,800 7,400 350.000 309,400 $508,540 $549,500 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 85 par value Retained earnings Total liabilities and equity $ 69,340 $100,300 83,800 111,000 210.000 226,000 145.400 112,200 $508,540 3549,500 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise Inventory Total assets Common stock, $5 par value Retained earning $ 29,800 $ 51.200 0 0 61,600 105.400 408,000 392,500 210.000 226,000 132.585 77.436 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $95 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 Eet On Com Stock 2A Price Earn 2A Div Yield Ratio Reg 28 Turn Assets Ratio Equity For both companies compute the return on common stockholders' equity. Id Return On Common Stockholders' Equity Company Choose Numerator Choose Denominator Return On Common Stockholders' Equity Net Income - Preferred dividends Average common stockholders' equity = Return On common stockholders' equity Barco 172,415 - 1 0% Kyan 212.400 - 0 % Merehandise avec Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-tern notes payable Common stock, $5 par value Retained earnings Total Liabilities and equity 5,800 2.400 350,000 309,400 Cash dividends per share $508,540 6549,500 Beginning-of-year balance sheet data Accounts receivable, net $ 69,340 5100,300 Current notes receivable (trade) 83,800 111,000 Merchandise inventory 210,000 226,000 Total assets 145,400 112,200 Common stock, $5 par value $500,540 $549,500 Retained earnings $ 29,800 $ 51,200 O 0 61,600 105.00 408,000 392,500 210.000 226,000 132.585 77.436 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $95 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. Com Stock 24 price Earn 2A Ret On 2A Pro Morg 2A Tot Asset 2A Ret on Tot 2A Div Yield Reg 28 Ratio Turn Assets Equity Ratio Assuming that share and each company's stock can be purchased at $95 per share, compute their price-earnings ratios. le) Price Earnings Ratio Company Choose Numerator: Choose Denominator: - Price-Earnings Ratio Market price per common share Earnings per share Price-earnings ratio Barco O times Kyan 4 Otimes Cash Accounts receivable, net Current notes receivable (trade) Merchandise Inventory Prepaid expenses Plant assets, net Total assets 9,300 15,185 172, 415 $ 19,000 $ 35, VUU 39.400 55,400 9,800 7,800 84,540 134,500 5,800 7,400 350,000 309,400 $508,540 $549,500 LORE BE SUIU Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share 13.000 24.boc 212,400 4.7 3.9 3.89 $ 29,800 $ 51.10 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 69,340 $100,300 83,800 111,000 210,000 226,000 145,400 112,200 $508,540 $549,500 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 61,600 408.000 210,000 132,585 105.40 392,50 226.00 77.4 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, compute their (e) price- earnings ratios and (7) 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 Ret On 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Price Earn Com Stock 2A Div Yield Req 2B Ratio Turn Assets Ratio Equity Assuming that share and each company's stock can be purchased at $95 per share, compute their dividend yields. Dividend Yield Company Choose Numerator: Choose Denominator: Annual cash dividends per share Market price per share - Dividend Yield Dividend yield 0 % 0 % Barco Kyan

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_2

Step: 3

blur-text-image_3

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

14th Canadian Edition

0135222419, 978-0135222416

More Books

Students also viewed these Accounting questions