70020 84 times Kyan 632500 119950 53 times e Days Sales in Inventory Company

70020 84 times kyan 632500 119950 53 times e days

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/ $70,020 = 8.4 times Kyan $632,500 / $119,950 = 5.3 times (e) Days’ Sales in Inventory Company Choose Numerator: / Choose Denominator: x Days = Days’ Sales in Inventory Merchandise inventory / Cost of goods sold x 365 = Days’ sales in inventory Barco $84,440 / $585,100 x 365 = 52.7 days Kyan $132,500 / $632,500 x 365 = 76.5 days (f) Days' Sales Uncollected Company Choose Numerator: / Choose Denominator: x Days = Days' Sales Uncollected Current receivables, net / Net sales x 365 = Days' sales uncollected Barco $46,500 / $770,000 x 365 = 22.0 days Kyan $64,600 / $880,200 x 365 = 26.8 days 12.For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return ontotal assets, and (d) return on common stockholders’ equity. Assuming that share and eachcompany’s stock can be purchased at $75 per share, compute their (e) price-earnings ratios and(f) dividend yields. (Do not round intermediate calculations. Round your answers to 2decimal places.) 2.1
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(a) Profit Margin Ratio Company Choose Numerator: / Choose Denominator: = Profit margin ratio Net income / Net sales = Profit margin ratio Barco $162,200 / $770,000 = 21.1 % Kyan $210,400 / $880,200 = 23.9 % (b) Total Asset Turnover Company Choose Numerator: / Choose Denominator: = Total Asset Turnover Net sales / Average total assets = Total asset turnover Barco $770,000 / $421,720 = 1.8 times Kyan $880,200 / $462,475 = 1.9 times (c) Return on Total Assets Company Choose Numerator: / Choose Denominator: = Return on Total Assets Net income / Average total assets = Return on total assets Barco $162,200 / $421,720 = 38.5 % Kyan $210,400 / $462,475 = 45.5 % (d) Return On Common Stockholders' Equity Company Choose Numerator: / Choose Denominator = Return On Common Stockholders' Equity Net income - Preferred dividends / Average common stockholders' equity = Return on common stockholders' equity Barco $162,200 - / $290,800 = 55.8 % Kyan $210,400 - / $323,875 = 65.0 % (e) Price-Earnings Ratio Company Choose Numerator: / Choose Denominator: = Price-Earnings Ratio Market price per common share / Earnings per share = Price-Earnings Ratio Barco $75 / $4.51 = 16.6 times Kyan $75 / $5.11 = 14.7 times (f) Dividend Yield Company Choose Numerator: / Choose Denominator: = Dividend Yield Annual cash dividends per share / Market price per share = Dividend Yield Barco $3.81 / $75 = 5.1 % Kyan $3.93 / $75 = 5.2 % Posted by Mr. Orange at 12:47 AM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest Object 2
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