Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401 Required: 2a. Prof Mar Ratio 2a. Tot Asset Turn
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401 Required: 2a. Prof Mar Ratio 2a. Tot Asset Turn
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...
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Question
Summary information from the financial statements of two companies competing in the same industry follows.
Barco Company | Kyan Company | Barco Company | Kyan Company | ||
Data from the current year-end balance sheets | Data from the current year’s income statement | ||||
Assets | Sales | $ 780,000 | $ 883,200 | ||
Cash | $ 19,000 | $ 37,000 | Cost of goods sold | 589,100 | 644,500 |
37,400 | 54,400 | Interest expense | 8,000 | 12,000 | |
Merchandise inventory | 84,340 | 136,500 | Income tax expense | 14,992 | 24,383 |
Prepaid expenses | 5,800 | 7,350 | Net income | 167,908 | 202,317 |
Plant assets, net | 370,000 | 310,400 | Basic earnings per share | 4.66 | 4.68 |
Total assets | $ 516,540 | $ 545,650 | Cash dividends per share | 3.72 | 3.99 |
Liabilities and Equity | Beginning-of-year |
||||
Current liabilities | $ 67,340 | $ 97,300 | Accounts receivable, net | $ 28,800 | $ 50,200 |
Long-term notes payable | 86,800 | 111,000 | Merchandise inventory | 59,600 | 113,400 |
Common stock, $5 par value | 180,000 | 216,000 | Total assets | 438,000 | 392,500 |
182,400 | 121,350 | Common stock, $5 par value | 180,000 | 216,000 | |
Total liabilities and equity | $ 516,540 | $ 545,650 | Retained earnings | 148,412 |
91,401 |
Required:
2a. Prof Mar Ratio
2a. Tot Asset Turn
![Complete this question by entering your answers in the tabs below.
2A Ret on Tot
2A Ret On
Equity
2A Prof Mar
2A Tot Asset
2A Price Earn
2A Div Yield
Req 2B
Ratio
Turn
Assets
Ratio
For both companies compute the profit margin ratio.
(a)
Profit Margin Ratio
Company
Numerator:
Denominator:
Profit margin ratio
Profit margin ratio
%3D
Barco
%3D
Kyan
%
K 2A Prof Mar Ratio
2A Tot Asset Turn](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F143b7291-6b2f-4218-9cb6-e2427b9bbec6%2F211r84_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
2A Ret on Tot
2A Ret On
Equity
2A Prof Mar
2A Tot Asset
2A Price Earn
2A Div Yield
Req 2B
Ratio
Turn
Assets
Ratio
For both companies compute the profit margin ratio.
(a)
Profit Margin Ratio
Company
Numerator:
Denominator:
Profit margin ratio
Profit margin ratio
%3D
Barco
%3D
Kyan
%
K 2A Prof Mar Ratio
2A Tot Asset Turn
![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 2B
Ratio
Turn
Assets
Equity
Ratio
For both companies compute the total asset turnover
(b)
Total Asset Turnover
Company
Numerator:
Denominator:
Total Asset Turnover
Total asset turnover
Barco
times
| Кyan
times
2A Prof Mar Ratio
2A Ret on Tot Assets
<>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F143b7291-6b2f-4218-9cb6-e2427b9bbec6%2Fdg2440s_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 2B
Ratio
Turn
Assets
Equity
Ratio
For both companies compute the total asset turnover
(b)
Total Asset Turnover
Company
Numerator:
Denominator:
Total Asset Turnover
Total asset turnover
Barco
times
| Кyan
times
2A Prof Mar Ratio
2A Ret on Tot Assets
<>
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