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Required information Problem 13-5A Comparative ratio analysis LO A1, P3 (The following information applies to the...

Question:

Required information Problem 13-5A Comparative ratio analysis LO A1, P3 (The following information applies to the questions d
Problem 13-5 Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (g return on total
) Telumi on total ass i LOMpanys stock can be purchased at $100 per sham Cumngs Patios and (5 dividend yields. (Do not round
5. earnings Patios and (h dividend ylelds. (Do not round intermediate calculations. Round your an 2b. Identify which company
a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and (d) retur
Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2
%3D Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret On Com Stoc
uitulationS. Round your ar CUmpany s SBER You would recommend as the better investment. Complete this question by entering yo
Required information 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 Kyan Company Barco Company Data from the current year's income statement Kyan Сопpany Data from the current year-end balance sheets Assets Cash $780,000 $905, 200 644,500 17,000 24,990 218,710 4.84 Sales $ 19,500 $ 37,000 55,400 8,000 132,500 7,650 304,400 $468,640 $544,950 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividenda per share 585,100 8,100 Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 39,400 9,800 84,640 14,992 171,808 5.05 5,300 310,000 3.73 4.00 Total assets Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Liabilities and Equity $ 28,800 $ 56,200 $ 69,340 $ 95,300 103,000 226,000 120,650 Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 61,600 418,000 170,000 113,400 372,500 226,000 82,800 170,000 146,500 Common stock, $5 par value Total liabilities and equity $468,640 $544,950 Retained earnings 101,512 82,740 Problem 13-5 Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $100 per share, compute their (e) price- earnings ratios and () dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2h. Identifv which comnanv's stock vnu wnuld rerommend as the hetter invectment < Prev of 5 Next>
Problem 13-5 Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (g return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $100 per share, compute their (e) price- earnings ratios and (A 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 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot 2A Price Earn Turn Assets Com Stock 2A Div Yield Reg 28 Ratio Equity For both companies compute the profit margin ratio. (a) Profit Margin Ratio CompanyChoose Numerator: I Choose Denominator: ofit margin ratio %3D Profit margin ratio %3D Barco %3D Kyan < 2A Pro Marg Ratio 2A Tot Asset Turn of 5 Next >
) Telumi on total ass i LOMpany's stock can be purchased at $100 per sham Cumngs Patios and (5 dividend yields. (Do not round intermediate calculations. Round your answers to 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 Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Earn 2A Div Yield Req 2B Ratio For both companies compute the total asset turnover (b) Total Asset Turnover Company Choose Numerator: I Choose Denominator: = Total Asset Turnover = Total asset turnover %3D times Barco times %3D Kyan 2A Ret on Tot Assets 2A Pro Marg Ratio Next>
5. earnings Patios and (h dividend ylelds. (Do not round intermediate calculations. Round your an 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 2A Pro Marg 2A Tot Asset 2A Rết on Tot 2A Price Earn Ratio Com Stock 2A Div Yield Req 2B Ratio Turn Assets Equity For both companies compute the return on total assets. (c) Return on Total Assets Company Choose Numerator: | Choose Denominator: = Return on Total Assets %3D Return on total assets Barco %3! Kyan 2A Tot Asset Turn 2A Ret On Com Stock Equity >
a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and (d) return on c cockholders' equity. Assuming that share and each company's stock can be purchased at $100 per share, compute their (e) pri arnings ratios and (6 dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Pet On Com-stock 2A Price Earn Ratio 2A Div Yield Req 28 Equity For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity Return On Common Stockholders' Equity - Return On common stockholders' equity Company Choose Numerator: Choose Denominator Barco %3D Kyan %3D < 2A Ret on Tot Assets 2A Price Earn Ratio < Prev of 5 Next>
Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Equity 2A Price Earn 2A Div Yield Req 28 Ratio Assuming that share and each company's stock can be purchased at $100 per share, compute their price-ea (e) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: = Price-Earnings Ratio = Price-earnings ratio Barco times %3D Kyan times 2A Ret On Com Stock Equity 2A Div Yield > < Prev of 5 Next> 5.
%3D Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret On Com Stock Equity 2A Ret on Tot 2A Price Earn Assets Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $100 per share, compute thein (1) Dividend Yield Company Choose Numerator: 7 Choose Denominator: Dividend Yield %3D Dividend yield Barco %3D Kyan < 2A Price Earn Ratio Req 2B of 5 Next
uitulationS. Round your ar CUmpany s SBER You would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Pro Marg 2A Tot Asset 2A Ret On 2A Ret on Tot Assets 2A Price Earn Ratio Turn Com Stock Ratio 2A Div Yield Req 2B Equity Identify which company's stock you would recommend as the better investment. The better investment < 2A Div Yield Req 2B %24 Next Prev of 5

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Income Statement Barco Kyan Answer 2 a Barco Kyan
Sales 780,000.00      905,200.00 Profit margin % 22.0% 24.2%
Cost of goods sold 585,100.00      644,500.00 Net Income/Net Sales
Gross Profit 194,900.00      260,700.00
Interest Expense        8,100.00        17,000.00 Total Assets Turnover Ratio                  1.8                 2.0
Income before taxes 186,800.00      243,700.00 Sales Revenue/Average Assets
Income tax expense      14,992.00        24,990.00
Net Income 171,808.00      218,710.00 Return on Total Assets 36.7% 40.1%
Basic Earnings per share                5.05                  4.84 Net Income/Total Assets
Cash Dividends per share                3.73                  4.00
Return on Common Stock holders Equity 54.3% 63.1%
Balance Sheets Net Income/Common Stock holders Equity
Assets Barco Kyan
Current Assets Price Earnings Ratio                19.8               20.7
Cash      19,500.00        37,000.00 Market Price Per Share/ Earnings Per share on Common Stock
Accounts Receivable (net)      39,400.00        55,400.00
Current Notes Receivable (trade)        9,800.00          8,000.00 Dividend Yield 3.7% 4.0%
Merchandise Inventory      84,640.00      132,500.00 Dividend Per share on Common Stock/ Market Price Per Share
Prepaid Expenses        5,300.00          7,650.00
Total Current Assets 158,640.00      240,550.00 Answer 2 b
Plant assets, net 310,000.00      304,400.00 Remarks- Kyan is a better investment opportunity because all of the above ratios are better and more improved than Barco.
Total Assets 468,640.00      544,950.00
Kyan Current Last Year
Liabilities & Stockholders' Equity Accounts Receivable (net)      55,400.00     56,200.00
Liabilities Current Notes Receivable (trade)        8,000.00                   -  
Current Liabilities      69,340.00        95,300.00 Average Receivable (net)      59,800.00
Long Term Note payable      82,800.00      103,000.00
Total Liabilities 152,140.00      198,300.00 Merchandise Inventory 132,500.00 113,400.00
Common Stock 170,000.00      226,000.00 Average Inventory 122,950.00
Retained Earnings 146,500.00      120,650.00
Total Stockholders' Equity 316,500.00      346,650.00 Total assets 544,950.00 372,500.00
Total Liabilities & Stockholders' Equity 468,640.00      544,950.00 Average assets 458,725.00
Total Current Assets 158,640.00      240,550.00
Less:
Inventory      84,640.00      132,500.00
Prepaid Expense        5,300.00          7,650.00
Quick Assets     68,700.00      100,400.00
Barco Current Last Year
Accounts Receivable (net)      39,400.00        28,800.00
Current Notes Receivable (trade)        9,800.00                       -  
Average Receivable (net)      39,000.00
Merchandise Inventory      84,640.00        61,600.00
Average Inventory     73,120.00
Total assets 468,640.00      418,000.00
Average assets 443,320.00
.

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