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There are 14 parts in total. Problem 13-5A Comparative ratio analysis LO A1, P3 The following information applies to the questions displayed below Summary information
There are 14 parts in total.
Problem 13-5A Comparative ratio analysis LO A1, P3 The following information applies to the questions displayed below Summary information from the financial statements of two companies competing in the same industry follows Barco Company Company Kyan Barco CompanyCompany Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $790,000 $909,200 592,100 636,500 8,200 12,000 15,185 25,100 174,515 235,600 4.59 5.72 3.91 $ 22,000 33,000 Cost of goods sold 39,400 54,400 Interest expense 9,500 7,200 Income tax expense 84,640 140, 500 Net income 5,200 7,450 Basic earnings per share 330,000 310,400 Cash dividends per share 3.80 $490,740 $552,950 Beginning-of-year balance sheet data Accounts receivable, net $ 28,800 53 200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 67,340 $ 91,300 Current notes receivable (trade) 82,800 107,000 Merchandise inventory 190,000 206,000 Total assets 150,600 148,650 Commonstock, $5 par value 57,600 107,1400 448,000 362,500 190,000 206 000 120,485 74,142 $490,740 $552,950 Retained earnings 2a. 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 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. Complete this question by entering your answers in the tabs below. 2A Ret On Ret on Tot Assets 2A Price Earn Ratio 2A Pro Marg 2A Tot Asset 2 2A Div Yield Req 2B Ratio Turn For both companies compute the profit margin ratio. Profit Margin Ratio CompanyChoose Numerator: , Choose Denominator: Profit margin ratio Profit margin ratio Barco 0% Kyan 0196 2A Pro Marg Ratio 2A Tot Asset Turn>Step by Step Solution
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