Required information Problem 13-5A (Algo) 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 Company Kyan Company Barco. Company Kyan Company Data from the current year-end balance sheets Data from the current year's income statement 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 Total liabilities and equity 79,800 160,000 122,800 $103,300 $ 429,940 $ 550,800 $ 20,500 38,400 $ 32,000 59,400 84,940 140,500 6,100 280,000 311,400 $ 429,940 $ 550,800 $ 67,340 109,000 216,000 122,500 7,500 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 Merchandise inventory Total assets Common stock, $5 par value. Retained earnings $ 790,000 $ 900,200 590,100 7,800 638,500 10,000 15,185 176,915 24,852 226,848 5.53 3.73 5.25 4.03 $ 27,800 $ 57,200 61,600 111,400 438,000 402,500 160,000 216,000 65,245 69,748 Problem 13-5A (Algo) 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 equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and () 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. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio: Equity Assets 2A Price Earn Ratio 2A Div Yield Req 28 For both companies compute the profit margin ratio, (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator. Profit margin ratio Profit margin ratio 0%