Required information Problem 13-5A 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 Company Company Data from the current year-end balance sheets Assets Cash $ 21,000 $ 37,000 Accounts receivable, net 36.400 53,400 Merchandise inventory 85,040 134,500 Prepaid expenses 5,900 7,300 Plant assets, net 310,000 304,400 Total assets $458,340 $536,600 Barco Company Company Data from the current year's income statement Sales $770,000 $911,200 Cost of goods sold 591,100 638,500 Interest expense 7.700 12,000 Income tax expense 14,800 25,155 Net income 156,400 235,545 Basic earnings per share 4.12 4.99 Cash dividends per share 3.74 3.96 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $ 96,300 85,800 105,000 190.000 236,000 117,200 99,300 5458,340 $536,600 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, 55 par value Retained earnings $ 31,800 $ 52,200 57,600 117.400 438,000 422,500 190,000 236,000 102,920 50,667 Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) price-earnings ratios and individend 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 Ratio Turn Assets 2A Ret On A Price Earn Com Stock Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. () Company Choose Numerator Profit Margin Ratio Choose Denominator = Profit margin ratio Profit margin ratio 1 Barco Kyan 2A Tot Asset Turn > Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) pe 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 Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On A Price Earn Assets Com Stock Ratio Turn 2A Div Yield Reg 2B For both companies compute the total asset turnover (5) Company Choose Numerator: Total Asset Tumover 1 Choose Denominator: 1 - Total Asset Turnover = Total asset turnover Barco 1 times Kyan times Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, an stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, compute their 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 Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Turn Assets Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets I Choose Denominator: Return on Total Assets - Return on total assets Barco Kyan 1 1 % 2A Tot Asset Turn 2A Ret On Com Stock > Problem 13-5A Part 2 2a. For both companies compute the laj profit margin ratio. (b) total asset turnover (return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, compute their (el 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 2A Tot Asset 2A Reton Tot Ratio Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio ZA Div Yield Reg 28 For both companies compute the return on common stockholders' equity (d) Company Choose Numerator: Return On Commen Stockholders Equity Choose Denominator Return On Common Stockholders' Equity Return On common stockholders' equily Barco Kyan (2A Raton Tot Assets 2A Price Earn Ratio > Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, compute their (e) 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 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Com Stock Ratio 2A Div Yield Reg 28 Assuming that share and each company's stock can be purchased at $95 per share, compute their price-earnings ratios. te) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: - Price-Earnings Ratio Price-earnings ratio Barco Kyan times / times Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on stockholders' equity. Assuming that each company's stock can be purchased at $95 per share, and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 dec 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 Ratio Turn Assets Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $95 per share, compute their dividend yiel Company Dividend Yield 7 Choose Denominator: Choose Numerator: Dividend Yield = Dividend yield Barco Kyan Problem 13-5A Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return stockholders' equity. Assuming that each company's stock can be purchased at $95 per sha and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 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 A Price Earn Com Stock Ratio 2A Div Yield Req 28 identify which company's stock you would recommend as the better investment. The better investment