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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, 330 $331, 230 Cash 3 22,330 $ 33,330 cost of goods sold 533,130 340,530 Accounts receivable, net 33,430 53,430 Interest expense 9,230 11,330 Current notes receivable (trade) 9,230 7,630 Income tax expense 14,992 24,|327 Merchandise inventory 34,340 130,530 Net income 157,733 235,373 Prepaid expenses 5,730 7,350 Basic earnings per share 3.99 4|.93 Plant assets, net 320,330 337,430 cash dividends per share 3.73 4.32 Total assets $479,940 $543,950 I Beginning-of-year balance sheet data Liabilities and Equity Accounts receivable, net $ 23,830 $ 55,?30 current liabilities $ 33,340 $ 95,330 current notes receivable (trade) 0 0 Long-term notes payable 79,830 113,330 Merchandise inventory 55,530 135,|430 Common stock, $5 par value 210,330 233,330 Total assets 443,330 432,530 Retained earnings 121,330 134,350 common stock, $5 par value 210,330 233,330 Total liabilities and equity $479,940 $545,950 Retained earnings 112, 352 94,931 7 7 I Problem 13-5 Part 2 2a. For both companies compute the (a) profit margin ratio, to) total asset turnover, (c) return on total assets, and (c0 return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their (9) price, earnings ratios and (a dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 25. 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 Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: = Price-Earnings Ratio = Price-earnings ratio Barco = 0 times Kyan 0 times2A 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 Assuming that share and each company's stock can be purchased at $75 per share, compute their dividend yields. (f) Dividend Yield Company Choose Numerator: / Choose Denominator: Dividend Yield = Dividend yield Barco 0 % Kyan 0