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pls help Required information [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the
pls help
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. Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Barco Company Kyan Company $ 22,500 39,400 84,940 5,400 $ 34,000 50,400 140,500 7,400 320,000 309,400 $ 472,240 $ 541,700 $ 71,340 $100,300 79,800 101,000 206,000 134,400 210,000 111,100 Total liabilities and equity $ 472,240 $541,700 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share i Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Barco Company $ 790,000 $ 892,200 592,100 644,500 12,000 24,631 211,069 5.12 4.01 7,600 15,185 175,115 4.17 3.78 Kyan Company $30,000 55,600 388,000 210,000 94,745 $57,200 117,400 392,500 206,000 88,543 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $70 per share, compute their (e) price-earnings ratios and (5) dividend yields. 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 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Equity Ratio For both companies compute the profit margin ratio. Profit Margin Ratio Denominator: (a) Company Barco Kyan Numerator: 1 1 2A Prof Mar Ratio 2A Div Yield =Profit margin ratio Profit margin ratio 0% 0% = 2A Tot Asset Turn > Req 28 Step by Step Solution
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