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. 18 points Skipped eBook 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 $790,000 $924, 200 Cash $ 22,000 $ 37,000 Cost of goods sold 590,100 642,500 Accounts receivable, net 37,400 59,400 Interest expense 9,300 14,000 Merchandise 84,440 138,500 Income tax expense inventory 15, 185 25,814 Prepaid expenses 6,100 6,900 Net income 175,415 242,186 Plant assets, net 290,000 306,400 Basic earnings per share 4.87 5.13 Total assets $439,940 $548,200 Cash dividends per share 3.75 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 95,300 Accounts receivable, net Long-term notes payable 89,890 189,000 Merchandise inventory 59,600 109,400 Common stock, $5 180,000 236,000 Total assets par value 448,666 372,40 Retained earnings 111,800 107,900 Common stock, $5 par value 180,000 236,000 Total liabilities S439,940 $548,200 Retained earnings 71,385 51,410 and equity 1 $ 31,800 $ 50, 400 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (4 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 thelr(e) price-earnings ratios and (1) 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 2A Tot 2A Ret on 2A Ret 2A Price 2A Div Mar Ratio Asset Req 2B Tot Earn On Com Yield For both companies compute the total asset turnover (b) Total Asset Turnover Choose I Choose Denominator: Total Asset Company Numerator: Turnover Total asset turnover Barco 0 times Kyan 0 times 2A Prof Mar Ratio 2A Ret on Tot Assets >