2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on commonstockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratiosand (f 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 OnCom Stock2A Prof Mar2A Ret on Tot2A Tot AssetTurn2A Price EarnRatioReg 2B2A Div YieldRatioAssetsAssuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios.(e)Price-Earnings RatioCompanyChoose Numerator:Choose Denominator:Price-Earnings RatioMarket price per common shareI Earnings per sharePrice-Earnings RatioBarco4.51times=Кyan5.11times< 2A Ret On Com Stock2A Div Yield > Summary information from the financial statements of two companies competing in the same industry follows.BarcoCompanyData from the current year-end balance sheetsКyanCompanyBarcoCompanyData from the current year's income statementКyanCompanyAssetsCashAccounts receivable, netMerchandise inventory$770,000 $880, 200585,1007,90014,800162,2004.51Sales$ 19,500 $ 34,00046,50084,4405,000290,000632,500CostInterest expenseIncome tax expenseNet incomegoods sold13,00024,30064,600132,5006,950304,400210,400Prepaid expensesPlant assets, netBasic earnings per share5.11Total assets$445,440 $542,450Cash dividends per share3.813.93Liabilities and EquityCurrent liabilitiesLong-term notes payableCommon stock, $5 par valueRetained earnings$ 61,340 $ 93,300101,000206.000Beginning-of-year balance sheet dataAccounts receivable, netMerchandise inventoryTotal assetsCommon stock, $5 par value$ 29,800 $ 54,20055,600398,000180,00080,800180,000123,300107,400382,500142,150206, 000Total liabilities and equity$445,440 $542,450Retained earnings98,30093,600

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: 2a. For both companies compute the (a)…

Business

Accounting

2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following is true? a. Return on Investment equals Margin divided by Average Operating Assets b. Turnover equals Sales divided by Stockholders Equity c. Margin equals Return on Investment divided by Turnover d. Return on Investment equals Margin divided by Turnover.
Use the attached information to complete the ratio analysis. The Ratio Analysis is for Profitability.
The return on total assets measures A. profitability by combining the effects of the profit margin and asset turnover. B.how efficiently a company uses its assets to generate sales. C.efficiency, profitability, and liquidity. D.liquidity.
On the multiple-step income statement, which of the following would be the least likely to be found in the section often described as "Other Revenues and Expenses" (or "Other Income and Losses)? a. Dividend revenue b. Interest expense c. Gains or losses on the sale of a long-term asset d. Interest revenue e. Income tax expense
Define each of the following terms:a. Annual report; balance sheet; income statement; statement of cash flows; statement ofstockholders’ equityb. Stockholders’ equity; retained earnings; working capital; net working capital; net operatingworking capital (NOWC); total debtc. Depreciation; amortization; operating income; EBITDA; free cash flow (FCF)d. Net operating profit after taxes (NOPAT)e. Market value added (MVA); economic value added (EVA)f. Progressive tax; marginal tax rate; average tax rateg. Tax loss carryback; carryforward; alternative minimum tax (AMT)h. Traditional IRAs; Roth IRAsi. Capital gain (loss)j. S corporation
B4.
The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of sales
the ratio which includes the average credit period received by the a business firm is known as options are : current asset turn over ratio working capital turnver ratio creditors turnover ratio inventory turnover ratio
1. Which of the following is referred to as the Accounting Equation? Assets Liabilities + Equity Equity Liabilities + Assets Liabilities Assets + Equity Assets = Liabilities - Equity = 2. Which of the following make up the Finance Equation? (select all that apply) Revenues = Price x Volume Costs = Fixed + Variable Profit Revenues-Costs Income Sales - COGS
2- Which of the following ratios would be most useful in determining a company's ability to cover its'interest payments? A. ROA. B Fixed charge coverage. C. Total asset turnover.
EXHIBIT 2 Selected Financial Data for Tesla, Inc., Years Ended December 31, 2015-2019 (in millions, except per share data) Income Statement Data: Revenues: Automotive sales Automotive leasing Total automotive revenues Energy generation and storage. Services and other Total revenues Cost of revenues: Automotive sales Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues. Gross profit (loss) Operating expenses: Research and development Selling, general and administrative Restructuring and other Total operating expenses. Loss from operations Interest income Interest expense Other income (expense), net Loss before income taxes Provision for income taxes 2015 2 $3.432 309 3,741 14 291 4,046 Net loss Net loss attributable to noncontrolling interests and subsidiaries 2,640 183 2,823 12 287 3,123 924 7.189 922 1,640 (717) 2 (119) (42) (876) 13 $ (889) Years Ended December 31 2016 $5,589 $ 8,535 762 1.107 9,642 1.116 6,351…