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Ra. For both companies compute the a profit margin ratio, (b) total asset turnover, ( return on total assets, and (d) return on common stockholders'

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Ra. For both companies compute the a profit margin ratio, (b) total asset turnover, ( 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 price-earnings ratios and 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 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Prion Eam Ratio 2 Div Yield Reg 28 For both companies compute the profit margin ratio. Profit Margin Ratio Choose Denominator: Company Choose Numerator: - Profit margin ratio margin ratio Barco Kyan A Mot Ratio 2A Tot Asset Turn > Required information Problem 17-5A 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 Barco Kyan Company Company Company Company Data from the current year-end balance Data from the current year's income statement sheets Assets Sales $790,000 $919,200 Cash $ 20,000 $ 32,000 Cost of goods sold 594,100 642. $007 Accounts receivable, net 39, 400 54,400 Interest expense 8,900 16,000 Merchandise inventory 84,840 140,500 Income tax expense 15,185 25, 376 Prepaid expenses 5,400 7,500 Net income 171, 815 235, 324 plant assets, net 360,000 305, 400 Basic earnings per share 4.52 5.45 Total assets $509,640 5539,800 Cash dividends per share 3.80 3.92 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data S 62,340 $ 93,300 Accounts receivable, net $ 26,800 $ 54,200 85,800 111,000 Merchandise inventory 55,600 109,400 190,000 216,000 Total assets 438,000 372, 500 171, 500 119,500 Common stock, SS par value 190,000 216,000 $509,640 $539,000 Retained earnings 144,085 53, $20

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