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[The following information applies to the questions displayed below] Summary information from the financial statements of two companies competing in the same industry follows. For

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[The following information applies to the questions displayed below] Summary information from the financial statements of two companies competing in the same industry follows. For both companies compute the current ratio. For both companies compute the acid-test ratio. For both companies compute the accou 1A Acct Rec Turn tes) receivable turnover. For both companies compute the inventory turnover. For both companies compute the days' sales in inventory. For both companies compute the days' sales uncollected. Identify the company you consider to be the better short-term credit risk. For both companies compute the profit margin ratio. (b) Iotal Asset Tumover \begin{tabular}{|l|l|l|l|l|} \hline Company Choose Numerator: & 1 Choose Denominator: & \multicolumn{2}{|c|}{ Total Asset Tumover } \\ \hline Barco & 1 & 1 \\ \hline Kyan & 1 \\ 1 & & = & Total asset turnover \\ \hline \end{tabular} (c) Return on Total Assets \begin{tabular}{|l|l|l|l|l|l|} \hline Company Choose Numerator: & 1 & Choose Denominator: & \multicolumn{2}{|l|}{ Return on Total Assets } \\ \hline Barco & & 1 & & = & Return on total assets \\ \hline Kyan & 1 & & = & & % \\ \hline \end{tabular} (d) Retum On Common Stockholders" Fquity Assuming that share and each company's stock can be purchased at $85 per share, compute their price-eamings ratios. (e) Price-Earnings Ratio \begin{tabular}{|l|l|l|l|l|l|} \hline Company Choose Numerator: & 1 & Choose Denominator: & Price-Eamings Ratio \\ \hline Barco & & 1 & & = & Price-earnings ratio \\ \hline Kyan & & 1 & & = & times \\ \hline \end{tabular} Assuming that share and each company's stock can be purchased at $85 per share, compute their dividend yields. \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ (f) Dividend Yield } & \multicolumn{2}{|c|}{ Dividend Yield } \\ \hline Company Choose Numerator: & 1 Choose Denominator: & = & \multicolumn{1}{|c|}{ Dividend yield } \\ \hline & & 1 & = & % \\ \hline Barco & & 1 & & = & \\ \hline Kyan & & 1 & & = & \\ \hline \end{tabular} Identify which company's stock you would recommend as the better investment

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