60.1K

Verified Solution

Link Copied!

can you please explain how to get the answers as well? that would be great! Thank you!

Summary information from the financial statements of two companies competing in the same industry follows. areo Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21.000 1.000 Accounts receivable, not 37,400 54,400 Current notes receivable (trade) 9.800 8.200 Merchandise inventory 84.840 134.500 Prepaid expenses 6,200 7,850 Plant assets, bet 290,000 306,400 Total assets $449,240 $542,350 Barco Kyan Company Company Data from the current year'. Income statement Sales $800,000 $920,200 Cont of goods sold 587,100 634,500 Interest expense 8.300 11,000 Income tax expense 15.377 25,404 Net income 189,223 249,296 Basie earnings per share 4.30 5.28 Cash dividende per share 3.95 $ 26,800 $58.200 Liabilities and Equity Current liabilities Long-term notas payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 68,340 $ 94,300 79.800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65.600 398,000 220,000 59,077 111.400 422,500 236.000 36,194 2a. For both companies compute the () profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) price- earnings ratios and ( 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 Price Ear 2A Di Yield Ratio Red 28 2A Reton 2A Pro Marg ZA Tot Asset 2A Ret on Tot Com Stock Ratio Turn Assets Equity For beth companies compute the profit margin ratio. Profit Margin Ratio Choose Denominator Company Choose Numerator Profit marain ratio Required information Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79, 800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65, 398, 220, 59, 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) earnings ratios and 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 Price Earn Ratio 2A Div Yield Req 28 2A Pro Marg 2A Fot Asset 2A Ret on Tot 2A Ret On Ratio Turn Com Stock Assets Equity For both companies compute the total asset turnover (b) Total Asset Turnover Choose Denominator: Company Choose Numerator: = Total Asset Turnover Total asset turnover O times 0 times Barco Kyan Required information Long-term notas payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65,600 398,000 220,000 59,077 2a. For both companies compute the () profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on cor stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) price earnings ratios and ( 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 Price Earn 2A Div Yield Req 2B 2A Pro Marg 2A Tot Asset 2 Ret on Tot 2A Ret On Ratio Com Stock Turn Asses Equity For both companies compute the return on total assets. Ratio Return on Total Assets I Choose Denominator: Company Choose Numerator: - Return on Total Assets = Return on total assets Barco Kyan Required information Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 220,000 236,000 81,100 99,050 5449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65,600 398,000 220,000 59,077 111.400 422,500 236,000 36,194 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (el price- earnings ratios and 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 Pro Marg 2A Ret On ZA Tot Asset 2A Ret on Tot A Price Earn Com Stock 2A Div Yield Reg 28 Ratio Tum Ratio Assets Equity For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity Company - Return On Common Stockholders' Equity Choose Numerator: Choose Denominator - Return On common stockholders' equity (o Barco Kyan ( 2A Reton Tot Assets 2A Price Earn Ratle > La aneu Required information Tong-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79.800 113.000 220,000 236,000 81,100 99,050 $449,240 $542,350 Merchandise inventory Total assets Common stock, 55 par value Retained earnings 65,600 398,000 220,000 59,077 111,400 422,500 236.000 36,194 2a. For both companies compute the () profit margin ratio, (b) total asset turnover, return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (el price- earnings ratios and 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. Tum 2A Ret On2A crice Eam 2A Pro Marg ZA Tot Asset 2A Ret on Tot Api Yield Com Stock Reg 26 Ratio Assets Patio Equity Assuming that share and each company's stock can be purchased at $70 per share, compute their price-earnings ratios. Price-Earnings Ratio Company - Price-Earnings Ratio Choose Numerator: Choose Denominator: Price-earnings ratio O times Kyan Otimes Total E Required information Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 220,000 236,000 81,100 99,050 $449,240 $542,350 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 65,600 398,000 220,000 59,077 111 422 236 36. 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) price- earnings ratios and 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 Ret On 2A Price Earn 2A DI Yield 2A Pro Marg 2A Tot Asset 2A Ret on Tot Com Stock Reg 2B Ratio Turn Assets Ratio Equity Assuming that share and each company's stock can be purchased at $70 per share, compute their dividend yields. Dividend Yield Choose Denominator: Company Choose Numerator: Dividend Yield = Dividend yield Barco Kyan Required information Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 113,000 Merchandise inventory 220,000 236,000 Total assets 81.100 99,050 Common stock, 35 par value $449,240 $542,350 Retained earnings 65,600 398,000 220,000 59,077 111,4 422,5 236, 36,1 2a. For both companies compute the profit margin ratio. (b) total asset turnover, return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (e) price- earnings ratios and () 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. ZA Pro Marg Ratio 2A Ret On 2A Tot Asset Turn 2A Ret on Tot Assets Com Stock 2A Price Earn Ratio 2A Di Yield Reg 28 Equity Identify which company's stock you would recommend as the better investment. The better investment ( A Div Yield

Answer & Explanation Solved by verified expert

See Answer