Answered Essay: Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Co

Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Barco Data from the current year-end balance sheets Company Company Data from the current years income statement Sales Assets $780,000 s 906,200 s 22000s 31,000 Cost of goods sold Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 587,100 640.500 9,100 14,000 14,992 25,017 168,808 226,683 4.02 4.80 381 4 02 39,400 55,400 Interest expense 9,800 8,400 Income tax expense 84,240 134,500 Net income 6.200 310,000 7.750 313,400 Basic earnings per share Cash dividends per share Total assets 471,640 550.450 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value $32,800 $ 56,200 0 $62,340 $ 101,300 0 81,800 111,000 Merchandise inventory 210,000 236,000 Total assets 55,600117,400 398,000392,500 210,000 236,000 117,500 Retained earnings 102,150 Common stock, $5 par value 471,640s 550,450 Retained earnings Total liabilities and equity 108,712 65,211
media%2Fb0d%2Fb0dd13a4-1408-4403-b1b9-a7
media%2F7f6%2F7f6f4275-1a12-413b-91c6-9b
media%2F019%2F019d4a45-7d36-4028-ad3f-2f

Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Barco Data from the current year-end balance sheets Company Company Data from the current year’s income statement Sales Assets $780,000 s 906,200 s 22000s 31,000 Cost of goods sold Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 587,100 640.500 9,100 14,000 14,992 25,017 168,808 226,683 4.02 4.80 381 4 02 39,400 55,400 Interest expense 9,800 8,400 Income tax expense 84,240 134,500 Net income 6.200 310,000 7.750 313,400 Basic earnings per share Cash dividends per share Total assets 471,640 550.450 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value $32,800 $ 56,200 0 $62,340 $ 101,300 0 81,800 111,000 Merchandise inventory 210,000 236,000 Total assets 55,600117,400 398,000392,500 210,000 236,000 117,500 Retained earnings 102,150 Common stock, $5 par value 471,640s 550,450 Retained earnings Total liabilities and equity 108,712 65,211

Expert Answer

 

Answer a
Profit Margin Ratio
Company Numerator / Denominator = Profit Margin Ratio
Net Income / Sales =
Barco $168,808.00 / $780,000.00 = 21.64%
Kyan $226,683.00 / $906,200.00 = 25.01%
Answer b
Total asset turnover
Company Numerator / Denominator = Total asset turnover
Sales / Average Total assets =
Barco $780,000.00 / $434,820.00 =                  1.79 times
Kyan $906,200.00 / $471,475.00 =                  1.92 times
Answer c
Return on total assets
Company Numerator / Denominator = Return on total assets
Net Income / Average Total assets =
Barco $168,808.00 / $434,820.00 = 38.82%
Kyan $226,683.00 / $471,475.00 = 48.08%
Answer d
Return on common stockholders equity
Company Numerator / Denominator = Return on Common stockholders equity
Net Income / Average Equity =
Barco $168,808.00 / $323,106.00 = 52.25%
Kyan $226,683.00 / $319,680.50 = 70.91%
Answer e
Price Earning Ratio
Company Numerator / Denominator = Price Earning Ratio
Market value per share / Earnings per share =
Barco $85.00 / $4.02 =                21.14 times
Kyan $85.00 / $4.80 =                17.71 times
Answer f
Dividend Yield
Company Numerator / Denominator = Dividend Yield
Cash dividend per share / Market value per share =
Barco $3.81 / $85.00 = 4.48%
Kyan $4.02 / $85.00 = 4.73%
Answer 2.2
I would recommend Kyan company’s stock as the better investment.
All above ratios are in a better position in case of Kyan Company in comparison with ratios of Barco Company.
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.