Ch 13: Assessment 3 Required information Saved Part 2 of 2 [The following information applies to the questions displayed below] Summary information from the financial statements of two companies competing in the same industry follows. 33.34 points Barco Company xyan Company Barco Company Kyan Company Data from the current year's income statement Sales $800,000 $ 22,000 $ 34,000 40,400 84,640 51,400 136,500 7,650 Cost of goods sold Interest expense Income tax expense Net Income 590,100 7,700 5891,200 632,500 11,000 15,377 24,603 106,823 223,097 307,400 Basic earnings per share, $ 536,950 Cash dividends per share $92,100 Accounts receivable, net 107,000 Merchandise inventory 190,000 134,200 236,000 Total assets 101,650 Common stock, $5 par value $472,340 $ 536,950 Retained earnings 4.92 3.82 4.75 3.97 Beginning-of-year balance sheet data $30,000 $ 51,200 61,600 115,400 378,000 372,500 190,000 230,000 92,537 65.937 00:10:29 Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 5,300 320,000 $472,340 $ 68,340 79,000 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (d) 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.