Required information Problem 13-5A (Static) 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 Data from the current year-end balance sheets Company Data from the current year's income statement Company Assets Sales $770,000 $880.200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,800 24,300 Prepaid expenses 5,000 6,950 Net income 162,200 210,400 Plant assets, net 290,000 304,400 Basic earnings per share 4.51 5.11 Total Assets $445,440 $542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 61,340 $ 93,300 Accounts receivable, bet $ 29,800 $ 54,200 80,800 101,000 Long-term notes payable 55,600 Merchandise inventory 107.400 398,000 Total assets 206,000 382,500 180,000 Common stock, 55 par value 180.000 206,000 Common stock, 55 par value 123,300 142,150 Retained earnings Retained earnings 98.00 93.600 $445,440 $548,450 Total liabilities and equity Problem 13-5A (Static) Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (a return on total assets, and (dreturn on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their le price-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. ZA Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On A Price Earn Com Stock Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. (a) Company Choose Numerator: Net income Barco Kyan Profit Margin Ratio Choose Denominator: / Net sales 1 = Profit margin ratio Profit margin ratio 0 % olo / 2A Prof Mar Ratio 2A Tot Asset Turn > Problem 13-5A (Static) Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (c) return on total assets, and (return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) 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 Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the total asset turnover (6) Total Asset Turnover Company Choose Numerator: 1 Choose Denominator: Net sales Average total assets Barco / Kyan = Total Asset Turnover Total asset turnover 0 times O times Problem 13-5A (Static) Part 2 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (a) return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-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 Ratio 2A Tot Asset Turn 2A RX on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the return on total assets. (c) Company Choose Numerator: Net Income Barco Kyan Return on Total Assets Choose Denominator: Average total assets Return on Total Assets Return on total assets 0 % 01% 2A Ret On Com Stock > Problem 13-5A (Static) 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 $75 per share, compute their () price-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 Assets Com Stock 2A Div Yield Reg 28 Patio Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (a) Price Earnings Ratio Company Choose Numerator: 1 Choose Denominator: Price-Earnings Ratio Market price per common share Earnings per share Price-Earnings Ratio o times 1 Barco O times Kyan 2A Div Yield > 2A Ret On Com Stock Problem 13-5A (Static) 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 $75 per share, compute thelr (el price-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. ZA Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Ratio Turn Assets Com Stock Ratio 2 Div Yield Req 28 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. (1) Dividend Yield Company Choose Numerator: Choose Denominator Dividend Yield 'Annual cash dividends per share Market price per share Dividend Yield 014 Barco 0 Kyan #