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. 1B 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 $799,000 $924, 200 Cash $ 22,900 $ 37,000 Cost of goods sold 590,100 642,900 Accounts receivable, net 37,400 59,400 Interest expense 9,300 14,000 Merchandise inventory 84,440 138,500 Income tax expense 15,185 25,514 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, 280 Cash dividends per share 3.75 3.93 1 50,400 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 67,340 $ 95, 300 Accounts receivable, net $ 31,800 $ 50, Long-term notes payable 80,800 109,880 Merchandise inventory 59,600 109,400 Common stock, $5 180,000 236,000 Total assets par value 448,000 372,900 Retained earnings 111,800 107,900 Common stock, $5 par value 180,000 236,000 Total liabilities $439,940 $548,200 Retained earnings and equity 71,385 51,10 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (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 (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. 2A Prof 2A Tot 2A Ret on 2A Ret 2A Ret on 2A Ret 2A Price 2A Div Mar Ratio Reg 2B Asset Tot On Com Earn Yield Assuming that share and each company's stock can be purchased at $90 per share, compute their price-earnings ratios. (e) Company Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: Price-Earnings = Ratio Price-earnings ratio = O times = 1 0 times Barco Kyan 2A Ret On Com Stock 2A Div Yield >