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		Barco Company		Kyan Company				Barco Company		Kyan Company
Data from the current year-end balance sheets						Data from the current years income statement
Assets						Sales	$	760,000	$	916,200
Cash	$	19,500	$	36,000		Cost of goods sold		595,100		642,500
Accounts receivable, net		34,400		52,400		Interest expense		8,600		15,000
Current notes receivable (trade)		9,100		8,000		Income tax expense		14,608		25,294
Merchandise inventory		84,940		134,500		Net income		141,692		233,406
Prepaid expenses		5,500		7,550		Basic earnings per share		3.94		5.16
Plant assets, net		310,000		310,400
Total assets	$	463,440	$	548,850
						Beginning-of-year balance sheet data
Liabilities and Equity						Accounts receivable, net	$	26,800	$	57,200
Current liabilities	$	66,340	$	96,300		Current notes receivable (trade)		0		0
Long-term notes payable		85,800		109,000		Merchandise inventory		59,600		111,400
Common stock, $5 par value		180,000		226,000		Total assets		408,000		412,500
Retained earnings		131,300		117,550		Common stock, $5 par value		180,000		226,000
1.1 For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days sales in inventory, and (f) days sales uncollected.(Use 365 days a year. Do not round intermediate calculations.) 2.1 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 paid cash dividends of $3.90 per share and each companys 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.) Lastly, Identify which companys stock you would reccomend as a better investment? Barco or Kayan?

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