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For both companies compute the ( a ) profit margin ratio, ( b ) total asset turnover, ( c ) return on total assets, and

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For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders equity. Assuming that share and each companys stock can be purchased at $70 per share, compute their (e) price-earnings ratios and (f) dividend yields.

Summary information from the financial statements of two companies competing in the same industry follows Barco Kyan Barco Kyan Company Company Company Company 879,200 646,500 Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $ 810,000 $ $ 36,000 $ 18,500 36,400 593,100 8,800 15,569 Cash Cost of goods sold 53,400 Interest expense Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net 14,000 24,272 192,53 194,428 4.50 3.91 10,000 Income tax expense 7,200 84,940 138,500 Net income 5,800 6,950Basic earnings per share Cash dividends per share 4.38 3.79 300,000 310,400 552,450 Total assets $455,640 $ Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable $ 28,800 $ 51,200 0 59,600 105,400 $ 67,340 $102,300 Current notes receivable (trade) 0 81,800 117,000Merchandise inventory 402,500 428,000 Common stock, $5 par value Retained earnings 220,000 216,000 Total assets 117,150 552,450 86,500 Common stock, $5 par value 220,000 216,000 Total liabilities and equity $455,640 $ Retained earnings 60,729 91,634

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