any help would be appreciated
O 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. 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 $770,000 $880, 200 Cash $ 19,500 $ 34,000 Cost of goods sold 585, 100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,800 24,380 Prepaid expenses 5,000 6,950 Net income 162,200 210,400 Plant assets, net 290,000 384,400 Basic earnings per share 4.51 5.11 Total assets $445,440 $542, 458 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total abilities and equity Beginning-of-year balance sheet data $ 61,340 $ 93,308 Accounts receivable, net 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300 142, 150 Common stock, $5 par value $445,440 $542,450 Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 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 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. (a) Profit Margin Ratio Company Choose Numerator: Choose Denominator: Profit margin ratio Profit margin ratio 0 % 0 % Barco Kyan = A Pret Mat Roti 2A Tot Asset Turn > 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Tum Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Company Total Asset Turnover Choose Denominator: Choose Numerator: Total Asset Turnover Total asset turnover O times 0 times Barco Kyan ( 2A Prof Mar Ratio 2A Ret on Tot Assets > 2A Prof Mar Ratio 2A Tot Asset 2A Reton Tot Tum Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A DIV Yield Reg 28 For both companies compute the return on total assets. (c) Company Return on Total Assets Choose Denominator: Choose Numerator: 1 - Return on Total Assets Return on total assets 0 % 01% Barco Kyan 11 1 ( 2A Tot Asset Turn 2A Ret On Com Stock > 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Tum Assets 2A Ret On Com stock 2A Price Earn Ratio ZA Div Yield Reg 26 For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity Company Choose Numerator: Choose Denominator Return On Common Stockholders' Equity Retum on common stockholders' oquity 0 % 0 % Barco Kyan 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Req 28 Ratio Tum Assets Com Stock Ratio Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratlos. (0) Price-Earnings Ratio Company Choose Numerator: 1 Choose Denominator: Price-Earnings Ratio 1 Price-Earnings Ratio Barco 0 times Kyan 0 times 1 (2A Ret On Com Stock 2A Div Yield > 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Tum Assets 2A Ret On Com Stock 2A Price Earn za biv Yield Ratio Req 2B Assuming that each company's stock can be purchased at $75 per share, compute their dividend ylelds. (0 Company Choose Numerator: Dividend Yield Choose Denominator: 1 1 Dividend Yield Dividend Yield 0 % 0 % Barco Kyan 1
