IThe tolowng mtormation apples to the questions disployed belorw Summary information from the financial statements of two companies competing in the same industry follows. BarcoKyan Company Company Barcony Comsa Data from the current year-end balance sheets Company Company Data from the current year’s income statement Assets Sales $780,000 s 906,200 Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 22,000 39,400 55,400 Interest expense 84,240 134,500 Net income 587100 640,500 9,100 14000 14,99225,017 S 31,000 Cost of goods sold 9,8008,400 Income tax expense 68,808 226.683 4.024.80 6,200 7.750 Basic earnings per share 313.400 Cash dividends per share 3.814.02 Total assets 471,640s 550.450 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value 32,800 $ 56.200 55,600 117,400 398,000 392,500 210,000 236,000 $62,340 $ 101,300 Current notes receivable (trade) 0 0 81,800 111,000 Merchandise inventory 210,000 236,000 Total assets 117,500 Retained earnings 102,150 Common stock, $5 par value Total liabilities and equity s 471640s 550,450 Retained earnings 108,712 65,211
