Problem 13-5A Comparative ratio analysis LO A1, 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 Barco Kyan Company Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales Cash Accounts receivable, net Current notes receivable (trade) Herchandise inventory Prepaid expenses Plant assets, net Total assets $770,000 $880, 200 585, 100 632,500 7,900 13,000 14, 800 24,00 162, 200 210, 400 4.51 5.11 3.93 s 19,500 s 34,000 Cost of goods sold 37, 400 57,400 Interest expense 9,100 7,200 Income tax expense 84, 440 132, 500 Net income 5, 000 6,950 Basic earnings per share 200,000 304,400 Cash dividends per share 445, 440 $542,450 3.81 Beginning-of-year balance sheet data Accounts receivable, net Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity s 29, 800 $ 54,200 s 61, 340 s 93,300 current notes receivable (trade) 80, 800 101,000 Merchandise inventory 180, 000 206,000 Total assets 123,300 142, 150 Common stock, $5 par value 55, 600 107,00 398, 000 302, 500 180,000 206, poo 98, 30093,600 $445, 440 $542,450 Retained earnings Problem 13-5A Part 2 2a. For both companies stockholders' equity. Assuming that share and each company's stock can be purch earnings ratios and (1 dividend yields. (Do not round intermediate calculation 2b. Identify which company's stock you would recommend as the better investment. compute the (a) profit margin fatio, (b) total asset turnover, (d) return on total assets, and (c) return on common at $75 per share, compute their (e) price- s. Round your answers to 2 decimal places.) to 2 decimal places. 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 Req 28 2A Div Yield For both companies compute the profit margin ratio. Profit Margin Ratio Choose Denominator:Profit margin ratio Company Choose Numerator: Proft margin ratio Barco Kyan Complete this question by entering your answers in the tabs below. 2A Tot Asse2A Assets Tot Mar 2A Rice Earn Ratio Turn Com Stock 2A Div Yield For both companies compute the total asset turnover Total Asset Turnover Choose Denominator: Company Choose Numerator: I "Total Asset Turnover | = | Total asset turnover Barco times Kyan times Complete thls question by entering your answers in the tabs below. 2A Prot Mar 2A Tot Asset 2A Ret on Tot 2A Ret on 2A Price Eam 2A Div Yield Req 28 Ratio Turn Assets Com Stock Ratio For both companies compute the return on common stockholders' equity Return On Common Stockholders: Equity Return On Common Stockholders' Equity Return on common stockholders' equity Choose Numerator Choose Denominator Barco Kyan Complete this question by entering your answers in the tabs below. 2A rice Earn frice Earm 2A Div Yield 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Assets Com Stock Ratio Turn atio Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. Price-Earnings Ratio 1 Choose Denominator: Price-Earnings Ratio Price-Eamings Ratio Company Choose Numerator: times Barco times Kyan 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 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Com Stock Ratio Div Yield Req 2B Assuming that share and each company's stock can be purchased at $75 per share, compute their dividend yields. (f Choose Numerator: Choose Denominator Dividend Yield Dividend Yield Barco Kyan 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets . 2A Ret on Com StockRatio2A Div Yieldeq 2B Identify which company's stock you would recommend as the better investment. The better investment