Problem 17-5A 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. Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) 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 Total liabilities and equity Problem 17-5A Part 2 Barco Company Kyan Company $ 19,500 $ 34,000 37,400 57,400 9,100 7,200 132,500 84,440 5,000 6,950 290,000 304,400 $445,440 $542,450 $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142, 150 $445,440 $542,450 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 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings Barco Kyan Company Company $770,000 $880,200 585, 100 632,500 7,900 13,000 14,800 24,300 162,200 210,400 4.51 3.81 5.11 3.93 $ 29,800 $ 54/200 0 0 55,600 107 400 398,000 382,500 180,000 206,000 98,300 93,600 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 share and each company's stock can be purchased at $75 per share, compute their (e) price- earnings ratios and (f) 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.

Problem 17.5A 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. Problem 17.5A Part 2 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (d) return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their (e) priceearnings ratios and (i) dividend yields. (Do not round intermediote calculations. Round your answers to 2 decimal ploces.) 2b. Identify which company's stock you would recommend as the better investment. 20. For both companies compute the (a) profit margin rato, (b) total asset turnover, (c) retum on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their (e) priceearnings ratios and ( f dividend ylelds. (Do not round intermediote colculations. Round your onswers 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. For both companies compute the profit margin ratio. For both companies compute the total asset turnover For both companies compute the return on total assets. For both companies compute the return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $75 per share, compute their p Assuming that share and each company's stock can be purchased at $75 per share, compute