80.2K

Verified Solution

Link Copied!

Required information Problem 13-5A Comparative ratio analysis LO A1, P3 The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company Data from the current vear-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $880,200 585,100 632,500 7,900 13,000 14,800 24,300 162,200 210,400 5.11 3.93 $ 19,500 34,000 Cost of goods sold 7,400 57,400 Interest expense 9,100 7,200 Income tax expense 132,500 Net income 84,440 4.51 3.81 5,000 6,950 Basic earnings per share 290,000 304,400 Cash dividends per share $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 29,800 $54,200 61,340 $ 93,300 Current notes receivable (trade) 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300142,150 Common stock, $5 par value 55,600 07,400 398,000 382,500 180,000 206,000 93,600 $445,440 $542,450 Retained earnings 98,300 lem 13-5A

Answer & Explanation Solved by verified expert

See Answer