Summary information from the financial statements of two companies competing in the same industry follows. Кyan Company Company Barco Barco Кyan Company Data from the current year-end balance sheets Company Data from the current year's income statement Assets Sales $770,000 $880,200 585,100 632,500 7,900 14,800 Cash $ 19,500 $ 34,000 Cost of goods sold 13,000 24,300 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 46,500 84,440 132,500 5,000 290,000 304,400 64,600 Interest expense Income tax expense 6,950 Net income Basic earnings per share 162,200 210,400 4.51 51.11 Total assets $445,440 $542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Beginning-of-year balance sheet data $ 61,340 $ 93,300 Accounts receivable, net 80,800 180,000 123,300 $ 29,800 $ 54,200 55,600 101,000 Merchandise inventory 206,000 Total assets 142,150 107,400 398,000 382,500 180,000 Common stock, $5 par value 206,000 Total liabilities and equity $445,440 $542,450 Retained earnings 98,300 93,600

Summary information from the financial statements of two companies competing in the same industry follows. Кyan Company Company Barco Barco Кyan Company Data from the current year-end balance sheets Company Data from the current year's income statement Assets Sales $770,000 $880,200 585,100 632,500 7,900 14,800 Cash $ 19,500 $ 34,000 Cost of goods sold 13,000 24,300 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 46,500 84,440 132,500 5,000 290,000 304,400 64,600 Interest expense Income tax expense 6,950 Net income Basic earnings per share 162,200 210,400 4.51 51.11 Total assets $445,440 $542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Beginning-of-year balance sheet data $ 61,340 $ 93,300 Accounts receivable, net 80,800 180,000 123,300 $ 29,800 $ 54,200 55,600 101,000 Merchandise inventory 206,000 Total assets 142,150 107,400 398,000 382,500 180,000 Common stock, $5 par value 206,000 Total liabilities and equity $445,440 $542,450 Retained earnings 98,300 93,600

Name: 2a. For both companies compute the (a) profit margin ratio, (b) total
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Description: 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) p

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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