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please answer the following question. thank you Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.)
please answer the following question. thank you
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,500 $ 33,000 Accounts receivable, net 51,400 Merchandise inventory 84,840 134,500 Prepaid expenses 5,400 7,000 Plant assets, net 320,000 309,400 Total assets $468,140 $535,300 37,400 Barco Kyan Company Company Data from the current year's income statement Sales $ 790,000 $896,200 Cost of goods sold 596,100 644, 500 Interest expense 8,900 10,000 Income tax expense 15,185 24,741 Net income 169,815 216,959 Basic earnings per share 4.99 5.27 Cash dividends per share 3.74 4.03 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 96,300 84,800 113,000 170,000 206,000 152,000 120,000 $468,140 $535,300 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 56,200 61,600 117,400 428,000 382,500 170,000 206,000 109,345 69,077 Problem 13-5A Part 2 2a. 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 each company's stock can be purchased at $80 per share, compute their (e) price-earnings ratios and (1) 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 Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio | Choose Denominator: II = Profit margin ratio Profit margin ratio 0 % Barco II Kyan II 0 % 2A Prof Mar Ratio 2A Tot Asset Turn > Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover Total Asset Turnover (b) Company Choose Numerator: | Choose Denominator: = Total Asset Turnover / = Total asset turnover Barco / = 0 times Kyan 1 = 0 times Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. Return on Total Assets (c) Company Choose Numerator: I Choose Denominator: = Return on Total Assets / II = Return on total assets Barco / = 0 % Kyan 1 II = 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $80 per share, compute their dividend yields. Dividend Yield (f) Company Choose Numerator: 1 Choose Denominator: = Dividend Yield 1 = Dividend yield Barco / II 0% Kyan 1 II 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investmentStep by Step Solution
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