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what is the average common stock holders equity? Required information (The following information applies to the questions displayed below.] Summary information from the financial statements
what is the average common stock holders equity?
Required information (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 Data from the current year-end balance sheets Kyan Copany Barco Company Data from the current year's income statement $780,000 588,100 8,400 14,99: 168,501 Assets Sales Cash $ 21,000 $ 33,000 37,400 84,640 5,200 Cost of goods sold Interest gxpense Income tat expense Net income Basic earnings per share Cash dividends per share Accounts receivable, net. Merchandise inventory Prepaid expenses Plant assets, net 54, 400 134,500 7,200 370,000 309,400 4.9 Total assets $518,240 $538,500 3.75 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value $ 64,340 $100,300 101,000 216,000 121,200 $ 28,800 53,600 408,001 170,000 80,800 170,000 203,100 Total liabilities and equity $518,240 $538,500 Retained earnings 163,45: Kyan Company Barco Kyan Company Company Data from the current year's income statement $780,000 $891,200 638,500 12,000 24,603 216,097 5.00 Sales 588,100 8,400 | 14,992 0 $ 33,000 54,400 10 Cost of goods sold Interest expense. Income tax expense 134,500 10 168,508 4.96 Net income 7,200 309,400 0 $538,500 Basic earnings per share 3.93 3.79 Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory S 28,800 $ 52,200 113,400 412,500 0 $100,300 53,600 |408,000 170,000 101,000 216,000 121,200 0 $538,500 Total assets 216,000 Common stock, $5 par value 163,452 74,879 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 each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and (5 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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Req 28 Turn Assets Com Stock Ratio Ratio For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity (d) - Return On Common Choose Denominator Company Choose Numerator: Net income - Preferred dividends /Average common stockholders' equity Retun On common stc Barco 168,508 Kyan 216,097- Step by Step Solution
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