Summary information from the financial statements of two companies competing in the same industry follows.
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 $ 22,000 $ 35,000 Accounts receivable, net 36,400 51,400 Merchandise inventory 84,840 136,500 Prepaid expenses 5.600 6.950 Plant assets, net 310,000 306,400 Total assets $458,840 $536,250 Barco Kyan Company Company Data from the current year's income statement Sales $810,000 $886,200 Cost of goods sold 595,100 650,500 Interest expense 7,900 12,000 Income tax expense 15,569 24,465 Net income 191,431 199,235 Basic earnings per share 5.04 4.61 Cash dividends per share 3.73 3.91 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $92,300 79,800 109,000 190,000 216,000 124,700 118,950 $458,840 $536,250 Beginning-of-year balance sheet data Accounts receivable, not Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 28,800 $ 54,200 63,600 109,400 438,000 412,500 190,000 216,000 75,009 88,627 Complete this question by entering your answers in the tabs below. 2a Diy Yield 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio Req 2B For both companies compute the profit margin ratio. Profit Margin Ratio 7 Choose Denominator: Company Choose Numerator: - Profit margin ratio Profit margin ratio 0 % Barco Kyan 0 % 2A Tot Asset Turn > 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 28 For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover Choose Denominator: = Total Asset Turnover Total asset turnover o times 0 times Barco Kyan 2A Prof Mar 2A Tot Asset Turn 2A Reton Tot Assets 2A Ret On Com Stock A Price Earn Earn Ratio 2A Div Yield Req 2B Ratio For both companies compute the return on total assets. Return on Total Assets 1 Choose Denominator: Company Choose Numerator: - Return on Total Assets Return on total assets 0 % 0 % Barco Kyan 2A Ratio 2A Tot Asset 2A Reton Totl2A rum Assets Com Shock 2A Price a For both companies compute the return on common stockholders' equity Return On Common Stockholders' Equity Company Choose Nurtor Return On common stockholders' equity ( 2A Mesa Tel Assets 2A Price Earn Ratie > 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock A Price Earn Ratio 2A Div Yleld Req 28 Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. Price-Earnings Ratio 1 Choose Denominator: Company Choose Numerator: - Price-Earnings Ratio Price-eamings ratio 0 times Barco Kyan Oltimos 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio o ly Yield Reg 28 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Dividend Yield 1 Choose Denominator: Company Choose Numerator: - Dividend Yield Dividend yield Barco Kyan 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment 2A Div Yield Reg21 Barco company Kyan company Required: 1a. For both companies compute the () current ratio, (b) acld-test ratio, ( accounts receivable turnover, (o) inventory turnover, (e) days sales In Inventory, and (7 days' sales uncollected. (Do not round Intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. 2a. For both companies compute the (aprofit margin ratio, (b) total asset turnover, return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 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
