Check my wol 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. -31 Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,5ee $ 37,eee Accounts receivable, net 39,480 56,4ee Merchandise inventory 84,740 138,500 Prepaid expenses 5,700 7,650 Plant assets, net 340, eee 313,4ee Total assets $499,340 $552,950 Barco Kyan Company Company Data from the current year's income statement Sales $790, eee $902, zee Cost of goods sold 593,1ee 640,500 Interest expense 7,600 12, eee Income tax expense 15,185 24,907 Net income 174, 115 224,793 Basic earnings per share 5.46 Cash dividends per share 4.81 5.44 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 71,340 $103,300 81,800 101,000 160, eee 206, eee 177,200 142,650 $490,340 $552,950 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 $ 55,200 61,600 115,400 418,eee 482, see 160,000 2e6, eee 124,365 83,069 DD Check my we 2 Required information Part 2 of 2 For both companies compute the (a) profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on common ockholders' equity. Assuming that share and each company's stock can be purchased at $80 per share, compute their (e) price- mings ratios and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1. Identify which company's stock you would recommend as the better investment. 8 00:43:54 Complete this question by entering your answers in the tabs below. Book Ratio ZA Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Com Stock 2A Div Yield Turn Assets Reg 2B Equity 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 Not income - Preferred dividends Average common stockholders' equity - Return On common stockholders' equity arco 174, 115 - 09 yan 224,793 - 0 % Mc Graw MALI DELL