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need help answering Summary information from the nancial statements of two companies competing in the same industry follows. Barco Kyan Barco Kyan Company Company Company

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Summary information from the nancial 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 $730, 000 $331, 200 Cash $ 22,000 $ 33,000 Cost of goods sold 533,100 640,500 Accounts receivable, net 33,400 53,400 Interest expense 9,200 11,000 Current notes receivable (trade) 9,200 7,600 Income tax expense 14,992 24,|327 Merchandise inventory 34,640 130,500 Net income 167,703 205, 373 Prepaid expenses 5,700 7,050 Basic earnings per share 3.99 4|.93 Plant assets, net 320,000 307,400 cash dividends per share 3.73 4.02 Total assets $479,940 $543,950 I Beginning-of-year balance sheet dat- Liabilities and Equity Accounts receivable, net $ 23,000 $ 554200 current liabilities $ 03, 340 $ 95,300 current notes receivable (trade) 0 0 Long-term notes payable 79,000 113,000 Merchandise inventory 05,600 105,}400 Common stock, $5 par value 210,000 205,000 Total assets 443,000 402,500 Retained earnings 121, 800 134,050 Common stock, $5 par value 210,000 206,000 Total liabilities and equity $479,940 $543,950 Retained earnings 112,052 94,901 7 7 I Problem 13-5 Part 2 23. For both companies compute the (a) profit margin ratio. ([2) total asset turnover, [c] return on total assets, and (a) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their [9) prices earnings ratios and (i) 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 Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Com Stock Ratio 2A Div Yield Req 2B Equity For both companies compute the return on total assets. (c) Return on Total Assets Company Choose Numerator: Choose Denominator: E Return on Total Assets = Return on total assets Barco 0 % Kyan 0 %2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Assets Com Stock 2A Price Earn 2A Div Yield Req 2B Turn Equity Ratio 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 = Return On common stockholders' equity Barco 0% Kyan 0%

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