5 Part 2 of 2 Required information [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows 10 points Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end Data from the current year's balance sheets income statement Assots Sales $770,000 $ 915,200 Cash 520,000 $34,000 Cost of goods sold 503,100. 640,500 P ferences Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Long-term notes payable Common stock, $5 par value Retained earnings Accounts receivable, net 34,400 58,400 Interest expense 8,800 85,040 136,500 Income tax expense 14,000 14,000 25,266 5,800 300,000 7,250 Net income 163,300 227,434 309,400 Basic earnings per share 5.10 5.26 $445,240 5 545,550 Cash dividenda per share 3.70 3.90 Beginning-of-year balance sheet data Current Liabilities 0.63,340 $ 96,300 Accounts receivable, net $30,800 553,200 81,800 101,000 Merchandise inventory 61,600 117,400 160,000 216,000 Total assets 388,000 422,500 140,100 132,250 Total liabilities and equity $445,240 545,550 Common stock, $5 par value Retained earnings 160,000 216,000 97,760 76,752 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price earnings ratios and (dividend yields. Ch 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and () dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 28 For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: 7 1 Profit Margin Ratio Denominator: = = Profit margin ratio Profit margin ration 0% <2A Pro! Mar Ratio 2A Tot Asset Turn > 5 Part 2 of 2 10 points eBook Required information yields. 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 Ratio Turn Assets Equity For both companies compute the total asset turnover 2A Price Earn 2A Div Yield Req 28 Ratio Print (b) Company Numerator: Barco Kyani Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover 0 times 0 times <2A Prof Mar Ratio 2A Ret on Tot Assets > 5 Part 2 of 2 0 points eBook Required information yields. 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 Ratio Turn Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 28 For both companies compute the return on total assets. Print (c) References Company Numerator: Barco Kyan Return on Total Assets Denominator: Return on Total Assets Return on total assets. 0% 0% <2A Tot Asset Turn 2A Ret On Equity > b rt 2 of 2 Required information yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. ints 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2 Ret On Ratio Turn Assets Equity For both companies compute the return on equity. eBook Print (d) References Company Numerator: Barco Kyan 2A Price Earn Ratio 2A Div Yield Req 28 Return On Equity Denominator. Return On Equity Return On equity 0% T 0% <2A Ret on Tot Assets 2A Price Earn Ratio > 12 wok Required information yields. 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 Ratio Turn Assets Equity Ratio 2A Price Earn 2A Div Yield Req 28 Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. ences (e) Company Barco Kyan Numerator Price-Earnings Ratio Denominator: Price-Earnings Ratio Price-earnings ratio 0 times 0 times < 2A Ret On Equity 2A Div Yield > Required information yields. 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 Ratio Turn Assets 2A Ret On 2A Price Earn 2A Div Yield Equity Ratio Req 28 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Company Barco Kyan Numerator: Dividend Yield Denominator: Dividend Yield Dividend yield 0% 0% <2A Price Earn Ratio Req 2B > S 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and () dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On 2A Price Earn 2A Div Yield Equity Ratio. Identify which company's stock you would recommend as the better investment. Req 28 The better investment < 2A Div Yield Req 2B >