0 Required information Problem 13-5A Comparative ratio analysis LO 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 year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $918,200 Cash $ 18,500 $ 31,000 Cost of goods sold 594,100 650,500 Accounts receivable, net 38,400 56,400 Interest expense 7.700 19,000 Merchandise inventory 84,940 132,500 Income tax expense 24,800 25,349 Prepaid expenses 6,000 7,100 Net Income 153,400 223,351 Plant assets, net 300.000 384.400 Basic earnings per share 3.65 5.42 Total assets $447,840 5531,400 Cash dividends per share 3.80 3.95 Liabilities and Equity Current liabilities Long-ter notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $70,340 $ 92,300 Accounts receivable, net 79,880 189,000 Merchandise inventory 210,000 206,000 Total assets 87,700 124,100 Connon stock. $5 par value $447,840 $531,400 Retained earnings $ 29,800 $ 51,200 55,600 107,400 378,000 402, 500 210,000 206,000 93,900 63,489 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (a) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price- carnings ratios and (a dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Com 2A Price Earn Ratio Tum Assets Stock 2A Div Yield Ratio For both companies compute the profit margin ratio 2A Rot On Com Stock (a) Profit Margin Ratio Company Choose Numerator: Choose Denominator -Profit margin ratio - Profit margin ratio Barco 1 0 % 1 0 % Kyan JAPO Mar 2A Tot Asset Turn > Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. ( return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (el price- earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better Investment. Complete this question by entering your answers in the tabs below. ZA DIV Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Reton Tot 2A Ret On Com 2A Price Earn Ratio Turn Assets Stock Ratio For both companies compute the total asset turnover (b) Total Asset Turnover Company Choose Numerator Choose Denominator: Barco Kyan Total Assot Turnover Total assotturnover Otimes 0 times 20. For both companies compute the (a) profit margin ratio. (c) total asset turnover (o return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (d price earnings ratios and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar 2A Tot Aset 2A Reton Tot A Ret On Com 2A Price Earn Ratio Turn Assets Stock Ratio 2A Div Yield For both companies compute the return on common stockholders equity (d Return On Common Stockholders' Equity Company Choose Numerator Choose Denominator Return On Common Stockholders' Equity Return On common stockholders' equily Barco 0 01 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (d) return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price- earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Com 2A Price Earn 2A Div Yield Ratio Turn Reg 20 Assets Stock Ratio Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratlos. (.) Price-Earnings Ratio Company Choose Denominator: Price-Earnings Ratio Price-samnings ratio Barco Kyan Choose Numerator O times O times 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (c) return on total assets, and (c) return on common stockholders' equity Assuming that each company's stock can be purchased at $75 per share, compute their (e) price- earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Com 2A Price Earn Ratio Turn Assets Stock 2A Div Yield Ratio Identify which company's stock you would recommend as the better investment The botter investment