! Required information [The following information applies to the questions displayed below.] Summary information from th

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Required Information The Following Information Applies To The Questions Displayed Below Summary Information From Th 1 (125.34 KiB) Viewed 11 times

! 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. Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Barco Company Kyan Company $ 22,000 $ 34,000 35,400 84,540 5,800 53,400 134,500 7,650 303,400 350,000 $ 497,740 $ 532,950 $ 60,340 $ 96,300 79,800 111,000 226,000 190,000 167,600 99,650 Total liabilities and equity $ 497,740 $ 532,950 The better investment Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On 2A Price Earn Equity Ratio Identify which company's stock you would recommend as the better investment. 2A Div Yield Barco Company Req 2B $ 770,000 593,100 7,800 14,800 154,300 4.06 3.79 $ 28,800 61,600 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and (f) dividend vields. 2b. Identify which company's stock you would recommend as the better investment. 428,000 190,000 157,320 Kyan Company $911,200 650,500 18,000 25,155 217,545 4.81 3.99 $ 51,200 113,400 392,500 226,000 62,453