Required Information Problem 17-5A (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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 21,500 34,400 $ 33,000 59,400 138,500 7,750 305, 400 $ 770,000 594,100 7,600 14,800 153,500 4.80 $ 922,200 648,500 18,000 25,459 230, 241 5.09 3.93 5,800 310,000 $ 456, 140 Data from the current year's ir.come 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 Merchandise inventory Total assets Common stock, $5 par value Retained earnings $544,050 3.71 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 67, 340 85,800 160,000 143,000 $ 456,140 $ 99,300 113,000 226,000 105,750 $544,050 $ 31,800 55,600 428,000 160,000 108,220 $ 54,200 107,400 402, 500 226,000 53,145 Problem 17-5A (Algo) Part 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, () return on total assets, and a return on equity. Assuming that each company's stock can be purchased at $85 per share, compute their (e price-earnings ratios and (1) dividend ylelds. 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 Div Yield Reg 2B 2A Prof Mar 2A Tot Asset 2A Ret on 2A Ret On 2A Price Earn Ratio Turn Tot Assets Com Stock Ratio For both companies compute the profit margin ratio. (a) Profit Margin Ratio Denominator: Company Numerator: 1 Profit margin ratio Profit margin ratio 96 Barco 1 Kyan %