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Barco Кyan Company Kyan Company Barco Company Company Data from the current year-end balance sheets Data from the current year' s income statement $810,000 $920,200 646,500 17,000 25,404 231,296 4.70 Assets Sales $ 20,000 $ 36,000 38,400 85,040 5,400 350,000 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share 589,100 7,900 15,569 197,431 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 57,400 136,500 7,350 304,400 5.20 Total assets $498,840 $541,650 Cash dividends per share 3.77 3.94 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 67,340 $ 92,300 80,800 190,000 160,700 $ 30,800 $ 58,200 63,600 428,000 190,000 111,400 402,500 105,000 246,000 98,350 Common stock, $5 par value 246,000 Total liabilities and equity $498,840 $541,650 Retained earnings 106,529 60,902

Barco Кyan Company Kyan Company Barco Company Company Data from the current year-end balance sheets Data from the current year' s income statement $810,000 $920,200 646,500 17,000 25,404 231,296 4.70 Assets Sales $ 20,000 $ 36,000 38,400 85,040 5,400 350,000 Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share 589,100 7,900 15,569 197,431 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 57,400 136,500 7,350 304,400 5.20 Total assets $498,840 $541,650 Cash dividends per share 3.77 3.94 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 67,340 $ 92,300 80,800 190,000 160,700 $ 30,800 $ 58,200 63,600 428,000 190,000 111,400 402,500 105,000 246,000 98,350 Common stock, $5 par value 246,000 Total liabilities and equity $498,840 $541,650 Retained earnings 106,529 60,902

FINANCIAL ACCOUNTING
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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Barco Kyan Кyan Company Barco Company Company Company Data from the current year-end balance sheets Data from the current year's income statement $810,000 $920,200 646,500 17,000 25,404 231,296 4.70 Assets Sales $ 20,000 $ 36,000 38,400 57,400 85,040 136,500 5,400 589,100 7,900 15,569 197,431 Cost of goods sold Interest expense Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Income tax expense Net income 7,350 350,000 304,400 Basic earnings per share 5.20 Total assets $498,840 $541,650 Cash dividends per share 3.77 3.94 Liabilities and Equity $ 67,340 $ 92,300 80,800 190,000 160,700 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory $ 30,800 $ 58,200 63,600 428,000 190,000 Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 105,000 246,000 98,350 111,400 402,500 Total assets Common stock, $5 par value 246,000 Total liabilities and equity $498,840 $541,650 Retained earnings 106,529 60,902
Transcribed Image Text:Barco Kyan Кyan Company Barco Company Company Company Data from the current year-end balance sheets Data from the current year's income statement $810,000 $920,200 646,500 17,000 25,404 231,296 4.70 Assets Sales $ 20,000 $ 36,000 38,400 57,400 85,040 136,500 5,400 589,100 7,900 15,569 197,431 Cost of goods sold Interest expense Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Income tax expense Net income 7,350 350,000 304,400 Basic earnings per share 5.20 Total assets $498,840 $541,650 Cash dividends per share 3.77 3.94 Liabilities and Equity $ 67,340 $ 92,300 80,800 190,000 160,700 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory $ 30,800 $ 58,200 63,600 428,000 190,000 Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings 105,000 246,000 98,350 111,400 402,500 Total assets Common stock, $5 par value 246,000 Total liabilities and equity $498,840 $541,650 Retained earnings 106,529 60,902
2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Req 2B Ratio Turn Assets Com Stock Ratio For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Choose Numerator: IChoose Denominator: Profit margin ratio %D Current assets | Current liabilities Profit margin ratio %3D Barco 148,840 / 67,340 221.0 % Кyan 237,250 / 92,300 257.0 % < 2A Prof Mar Ratio 2A Tot Asset Turn > II
Transcribed Image Text:2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (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 Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Req 2B Ratio Turn Assets Com Stock Ratio For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Choose Numerator: IChoose Denominator: Profit margin ratio %D Current assets | Current liabilities Profit margin ratio %3D Barco 148,840 / 67,340 221.0 % Кyan 237,250 / 92,300 257.0 % < 2A Prof Mar Ratio 2A Tot Asset Turn > II
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