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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

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 years income statement
Assets Sales $ 770,000 $ 883,200
Cash $ 19,000 $ 34,000 Cost of goods sold 588,100 648,500
Accounts receivable, net 34,400 51,400 Interest expense 9,300 12,000
Current notes receivable (trade) 10,000 7,400 Income tax expense 14,800 24,383
Merchandise inventory 84,540 136,500 Net income 157,800 198,317
Prepaid expenses 5,400 7,400 Basic earnings per share 4.15 4.59
Plant assets, net 320,000 312,400 Cash dividends per share 3.78 3.95
Total assets $ 473,340 $ 549,100
Beginning-of-year balance sheet data
Liabilities and Equity Accounts receivable, net $ 25,800 $ 51,200
Current liabilities $ 67,340 $ 101,300 Current notes receivable (trade) 0 0
Long-term notes payable 84,800 111,000 Merchandise inventory 59,600 115,400
Common stock, $5 par value 190,000 216,000 Total assets 418,000 402,500
Retained earnings 131,200 120,800 Common stock, $5 par value 190,000 216,000
Total liabilities and equity $ 473,340 $ 549,100 Retained earnings 117,040 93,123

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 share and each companys stock can be purchased at $100 per share, compute their (e) price-earnings ratios and (f) dividend yields

For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected

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