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 Total liabilities and equity Barco Kyan Barco Company (a) Company Numerator: Kyan Company $36,000 57, 400 132, 500 $ 21,500 40,400 84,440 6,100 7,650 340,000 304, 400 $492,440 $ 537, 950 For both companies compute the profit margin ratio. 1 1 1 1 $ 65,340 $92,300 80,800 105,000 210,000 136,300 $492,440 $ 537,950 206, 000 134, 650 Profit Margin Ratio Complete this question by entering your answers in the tabs below. ZA Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio Denominator: Data from the current year's income statement Sales Cost of goods sold 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 $100 per share, compute their (e) price-earnings ratios and ( dividend yields. 2b. Identify which company's stock you would recommend as the better investment. = 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 2A Div Yleld Profit margin ratio Profit margin ratio 96 % Barco Kyan Company Company Req 28 $760,000 $ 900,200 588,100 7,800 644,500 18,000 14,608 24,852 149,492 212,848 3.56 5.17 3.79 4.02 $ 29,800 55,600 438,000 210,000 145,988 $50,200 111,400 372,500 206,000 87,426
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 Total liabilities and equity Barco Kyan Barco Company (a) Company Numerator: Kyan Company $36,000 57, 400 132, 500 $ 21,500 40,400 84,440 6,100 7,650 340,000 304, 400 $492,440 $ 537, 950 For both companies compute the profit margin ratio. 1 1 1 1 $ 65,340 $92,300 80,800 105,000 210,000 136,300 $492,440 $ 537,950 206, 000 134, 650 Profit Margin Ratio Complete this question by entering your answers in the tabs below. ZA Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio Denominator: Data from the current year's income statement Sales Cost of goods sold 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 $100 per share, compute their (e) price-earnings ratios and ( dividend yields. 2b. Identify which company's stock you would recommend as the better investment. = 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 2A Div Yleld Profit margin ratio Profit margin ratio 96 % Barco Kyan Company Company Req 28 $760,000 $ 900,200 588,100 7,800 644,500 18,000 14,608 24,852 149,492 212,848 3.56 5.17 3.79 4.02 $ 29,800 55,600 438,000 210,000 145,988 $50,200 111,400 372,500 206,000 87,426
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
Total liabilities and equity
Bar co
Kyan
Barco
Company
(a)
Company
$ 21,500
40,400
84,440
6,100
340,000
$492,440 $ 537,950
For both companies compute the profit margin ratio.
Numerator.
T
T
Kyan
Company
$36,000
57,400
$ 65,340
80,800
210,000
136,300
$492,440 $ 537,950
$ 92, 300
105, 000
206,000
134, 650
132, 500
7,650
304, 400
Complete this question by entering your answers in the tabs below.
Profit Margin Ratio
2A Prof Mar Ratio
ZA Prof Mar ZA Tot Asset ZA Ret on Tot ZA Ret On 2A Price Eam
Ratio
Tum
Assets
Equity
Ratio
Data from the current year's
income statement
Denominator:
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
2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity.
dividend
Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-eamings ratios and
yields.
2b. Identify which company's stock you would recommend as the better investment.
data
Accounts receivable, net
Merchandise inventory
Total assets
Common stock, $5 par value
Retained earnings
2A DIV Yleld
Profit margin
ratio
= Profit margin ratio
%
%6
2A Tot Asset Turn >
Barco
Kyan
Company Company
Req 28
$760,000 $ 900,200
588,100
7,800
644,500
18,000
14,608
24,852
149,492
212,848
3.56
5.17
3.79
4.02
$ 29,800
55,600
438,000
210,000
145,988
$ 50,200
111,400
372,500
206,000
87,426](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c80c5f7-61ac-4466-910c-3c4f52dd24bf%2Fa99f54d1-1e2a-4f35-9d18-35770ae9119b%2F6icbpse_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Total liabilities and equity
Bar co
Kyan
Barco
Company
(a)
Company
$ 21,500
40,400
84,440
6,100
340,000
$492,440 $ 537,950
For both companies compute the profit margin ratio.
Numerator.
T
T
Kyan
Company
$36,000
57,400
$ 65,340
80,800
210,000
136,300
$492,440 $ 537,950
$ 92, 300
105, 000
206,000
134, 650
132, 500
7,650
304, 400
Complete this question by entering your answers in the tabs below.
Profit Margin Ratio
2A Prof Mar Ratio
ZA Prof Mar ZA Tot Asset ZA Ret on Tot ZA Ret On 2A Price Eam
Ratio
Tum
Assets
Equity
Ratio
Data from the current year's
income statement
Denominator:
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
2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity.
dividend
Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-eamings ratios and
yields.
2b. Identify which company's stock you would recommend as the better investment.
data
Accounts receivable, net
Merchandise inventory
Total assets
Common stock, $5 par value
Retained earnings
2A DIV Yleld
Profit margin
ratio
= Profit margin ratio
%
%6
2A Tot Asset Turn >
Barco
Kyan
Company Company
Req 28
$760,000 $ 900,200
588,100
7,800
644,500
18,000
14,608
24,852
149,492
212,848
3.56
5.17
3.79
4.02
$ 29,800
55,600
438,000
210,000
145,988
$ 50,200
111,400
372,500
206,000
87,426
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