5b

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 $780,888 5890,200 Cash $ 22,000 5 34.000 Cost of goods sold 591,100 645 50 Accounts receivable, net 38,400 51,400 Interest expense 8,900 18,000 Merchandise inventory 54,640 140,500 Income tax expense 14,992 24/576 Prepaid expenses 7,000 Net Income 165,000 207,124 Plant assets, net 340.000 310,400 Basic earnings per share 5.16 4.39 Total assets $490, 540 $543,300 Cash dividends per share 3.81 3.96 5,500 - Liabilities and Equity Current Habilities Long-term cotes payable Connon stock, 55 par value Retained earnings Total liabilities and equity $ 60,340 00,300 33.800 105,000 160.000 236,000 186,400 112,000 $490,5485543300 Beginning of year balance sheet data Accounts receivable, net Merchandise Inventory Total assets Common stock 55 par Value Retained earnings $ 31,800 $ 51200 61,600 113,400 378,000 372/500 160,000 236,000 143.312 91788 (e) Company Price Earnings Ratio Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio times times Barco Kyan (1) Company Dividend Yield / Choose Denominator: Choose Numerator: - Dividend Yield = Dividend yield % 11 Barco Kyan 11 % The better investment 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (retum on total assets, and (c) return on common stockholders' equity Assuming that each company's stock can be purchased at $85 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