4 ! Required information [The following information applies to the questions displayed below.) Part 2 of 2 Summary information from the financial statements of two companies competing in the same industry follows. 2.5 points Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21,500 $ 34,000 Accounts receivable, net 38,400 58,400 Merchandise inventory 84,940 132,500 Prepaid expenses 5,900 7,650 Plant assets, net 280,000 308,400 Total assets $430,740 $540,950 Barco Kyan Company Company Data from the current year's income statement Sales $780,000 $899,200 Cost of goods sold 585,100 640,500 Interest expense 8,300 12,000 Income tax expense 14,992 24 824 Net income 171,608 221,876 Basic earnings per share 4.29 4.70 Cash dividends per share 3.77 3.97 eBook Print References Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 60,340 $ 95,300 84,800 117,000 200,000 236,000 85,600 92,650 $430,740 $540,950 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 26,800 $ 51,200 65,600 109,400 448,000 422,500 200,000 236,000 64,792 58.158 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 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. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio 1 Choose Denominator: = Profit margin ratio = Profit margin ratio 0 % 0 % Barco Kyan 1 References 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the total asset turnover (b) Total Asset Turnover | Choose Denominator: Company Choose Numerator: ! = Total Asset Turnover = Total asset turnover 0 times Barco Kyan 0 times References 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the total asset turnover (b) Total Asset Turnover | Choose Denominator: Company Choose Numerator: ! = Total Asset Turnover = Total asset turnover 0 times Barco Kyan 0 times References 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets Choose Denominator: = Return on Total Assets = Return on total assets nl/ Barco Kyan 0 % References 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on common stockholders' equity. (d) Company Return On Common Stockholders' Equity Choose Denominator Choose Numerator: Return On Common Stockholders' Equity = Return On common stockholders' equity Barco 0 % Kyan 1 0 % References 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios. (e) Price-Earnings Ratio 1 Choose Denominator: Company Choose Numerator: = Price-Earnings Ratio = Price-earnings ratio 0 times 0 times / Barco Kyan 1 = References 1 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Assuming that each company's stock can be purchased at $90 per share, compute their dividend yields. (0) Company Dividend Yield 7 Choose Denominator: Choose Numerator: Dividend Yield Dividend yield = 0 % Barco Kyan - 0 % References Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Identify which company's stock you would recommend as the better investment. The better investment