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Summary information from the financial statements of two companies competing in the same industry follows.     Barco Company Kyan Company   Barco Company Kyan Company Data from the current year-end balance sheets     Data from the current year’s income statement     Assets     Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity     Beginning-of-year balance sheet data     Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401   Required: 2a. Ret on Tot Assets 2a. Ret on Equity

Summary information from the financial statements of two companies competing in the same industry follows.     Barco Company Kyan Company   Barco Company Kyan Company Data from the current year-end balance sheets     Data from the current year’s income statement     Assets     Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity     Beginning-of-year balance sheet data     Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500 Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000 Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401   Required: 2a. Ret on Tot Assets 2a. Ret on Equity

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 52CE: Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow....
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Summary information from the financial statements of two companies competing in the same industry follows.
 

  Barco Company Kyan Company   Barco Company Kyan Company
Data from the current year-end balance sheets     Data from the current year’s income statement    
Assets     Sales $ 780,000 $ 883,200
Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500
Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000
Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383
Prepaid expenses 5,800 7,350 Net income 167,908 202,317
Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68
Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99
Liabilities and Equity     Beginning-of-year balance sheet data    
Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200
Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400
Common stock, $5 par value 180,000 216,000 Total assets 438,000 392,500
Retained earnings 182,400 121,350 Common stock, $5 par value 180,000 216,000
Total liabilities and equity $ 516,540 $ 545,650 Retained earnings 148,412 91,401

 

Required:

2a. Ret on Tot Assets

2a. Ret on Equity

 

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 Equity Ratio For both companies compute the return on equity. (d) Return On Equity Company Numerator: Denominator Return On Equity %3D Return On equity Barco | Кyan %3D 2A Ret on Tot Assets 2A Price Earn Ratio <> II
Transcribed Image Text: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 Equity Ratio For both companies compute the return on equity. (d) Return On Equity Company Numerator: Denominator Return On Equity %3D Return On equity Barco | Кyan %3D 2A Ret on Tot Assets 2A Price Earn Ratio <> II
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 Equity Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Numerator: Denominator: Return on Total Assets %3D Return on total assets %3D Barco %3D |Кyan 2A Tot Asset Turn 2A Ret On Equity <>
Transcribed Image Text: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 Equity Ratio For both companies compute the return on total assets. (c) Return on Total Assets Company Numerator: Denominator: Return on Total Assets %3D Return on total assets %3D Barco %3D |Кyan 2A Tot Asset Turn 2A Ret On Equity <>
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