Required information Problem 17-5A Comparative ratio analysis LO A1, 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 Company Kyan Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory Prepaid expenses Plant assets, net Total assets Data from the current year's income statement Sales $770,000 $880,200 585,100 6321500 13,000 14,800 24 300 162,200 210,400 $ 19,50 34,00 Cost of goods sold 37,400 57,400 Interest expense 7,900 9,100 7,200 Income tax expense 84,440 132,500 Net income 6,950 Basic earnings per share 4.51 3.81 5,000 290,000 304,400 Cash dividends per share $445,440 $542,450 3.93 Beginning-of -year balance sheet data Accounts receivable, net Liabilities and Equity Current 1iabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 29,80054 200 $ 61,340 93,300 Current notes receivable (trade) 55,600 1071400 398,000 382,500 180,000 2060 98,300 93,600 80,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123, 300 142,150 Common stock, $5 par value $445,440 $542,45 Retained earnings Problem 17-5A Part 2 2a. 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 share and 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 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn Assets 2A Div Yield Req 2B Ratio Com Stock Ratio For both companies compute the profit margin ratio Profit Margin Ratio Choose Denominator: Company Choose Numerator: I Profit margin ratio Profit margin ratio Barco Kyan 2A Prof Mar Ratio 2A Tot Asset Tum> Complete this question by entering your answers in the tabs below 2A Price Earn Ratio - 2A Ret On Assets Com Stock 2A Ret on Tot l 2A Tot Asset Turn Req 2B 2A Prof Mar Ratio For both companies compute the total asset turnover Total Asset Turnover = | Total Asset Turnover Total asset turnover Choose Denominator: Company Choose Numerator: I times Barco times Kyan 2A Prof Mar Ratio 2A Ret on Tot Assets > Complete this question by entering your answers in the tabs below 2A Prof M 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Rea 2B Ratio Turn Assets Com Stock Ratio For both companies compute the return on total assets Return on Total Assets Choose Denominator: Company Choose Numerator: I - Return on Total Assets Return on total assets = Barco Kyan 2A Tot Asset Turn 2A Ret On Com Stock > Complete this question by entering your answers in the tabs below 2A Prof Mar 2A Tot Asset 2A Ret on Tot2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Req 2B Ratio Turn Assets For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity Company Choose Numerator: Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity Barco Kyan 2A Ret on Tot Assets 2A Price Earn Ratio > Complete this question by entering your answers in the tabs below 2A Prof Mar 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div YieldReq 2B Ratio Assuming that share and each company's stock can be purchased at $75 per share, compute their dividend yields ividend Yiel Company Choose Numerator: Choose Denominator: Dividend Yield = | Dividend Yield Barco Kyan Complete this question by entering your answers in the tabs belovw 24 Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div YieldReq 28B Identify which company's stock you would recommend as the better investment. The better investment