Question
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 | $ | 780,000 | $ | 889,200 | ||||||||||||||||||||||||||||||||||||||||
| Cash | $ | 21,500 | $ | 33,000 | Cost of goods sold | 584,100 | 646,500 | ||||||||||||||||||||||||||||||||||||||
| Accounts receivable, net | 35,400 | 51,400 | Interest expense | 8,400 | 11,000 | ||||||||||||||||||||||||||||||||||||||||
| Current notes receivable (trade) | 9,800 | 8,600 | Income tax expense | 14,992 | 24,548 | ||||||||||||||||||||||||||||||||||||||||
| Merchandise inventory | 84,840 | 138,500 | Net income | 172,508 | 207,152 | ||||||||||||||||||||||||||||||||||||||||
| Prepaid expenses | 5,900 | 7,050 | Basic earnings per share | 4.11 | 5.03 | ||||||||||||||||||||||||||||||||||||||||
| Plant assets, net | 320,000 | 312,400 | Cash dividends per share | 3.81 | 4.02 | ||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 477,440 | $ | 550,950 | |||||||||||||||||||||||||||||||||||||||||
| Beginning-of-year balance sheet data | |||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Equity | Accounts receivable, net | $ | 29,800 | $ | 57,200 | ||||||||||||||||||||||||||||||||||||||||
| Current liabilities | $ | 70,340 | $ | 96,300 | Current notes receivable (trade) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
| Long-term notes payable | 79,800 | 111,000 | Merchandise inventory | 55,600 | 109,400 | ||||||||||||||||||||||||||||||||||||||||
| Common stock, $5 par value | 210,000 | 206,000 | Total assets | 448,000 | 372,500 | ||||||||||||||||||||||||||||||||||||||||
| Retained earnings | 117,300 | 137,650 | Common stock, $5 par value | 210,000 | 206,000 | ||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 477,440 | $ | 550,950 | Retained earnings | 104,812 | 96,122 | ||||||||||||||||||||||||||||||||||||||
| 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 $90 per share, compute their (e) price-earnings ratios and (f) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) (a)
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(c)
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(d)
| Return On Common Stockholders' Equity | ||||||||
| Company | Choose Numerator: | / | Choose Denominator | = | Return On Common Stockholders' Equity | |||
| - | / | = | Return On common stockholders' equity | |||||
| Barco | - | / | = | 0 | % | |||
| Kyan | - | / | = | 0 | % | |||
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AML Auditing Understanding Foreign Exchange What Every AML KYC Auditor Should Know
Authors: Bob Walsh
1st Edition
1539576248, 978-1539576242
