Required information Problem 17-5A 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 $ 20,000$ 37,000 Accounts receivable, net 40,480 55,400 Merchandise inventory 85,040 130,500 Prepaid expenses 6,280 7,600 Plant assets, net 360,000 311 400 Total assets $511,640 $541,900 Barco Kyan Company Company Data from the current year's income statement Sales $818,000 $885,200 Cost of goods sold 588,100 646 seo Interest expense 7,700 16.000 Income tax expense 15,569 24:438 Net income 198,631 198,262 Basic earnings per share 4.73 5.6 Cash dividends per share 3.80 4.01 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $ 92,300 81,500 115,000 210,000 196,000 154,500 138,600 5511,640 $541,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 53200 55,600 107,400 378,000 412 500 210.000 196,000 115,469 97530 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover. (g return on total assets, and (dreturn on common stockholders equity. Assuming that each company's stock can be purchased at $105 per share, compute their le 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 Reton Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. (al Profit. Margin Ratio Company Choose Numerator: 1 Choose Denominator: - Profit margin ratio Profit margin ratio 0 % 0 % 2 Barco Kyan 1 DAF 2A Tot Asset Turn > 20. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (a return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at S105 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 Price Earn Ratio 2A Div Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Com Stock For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover 1 Choose Denominator: 1 Total Asset Turnover Total asset turnover 0 times Barco Kyan O times 20. 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 $105 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 Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Dev Yield Reg 28 For both companies compute the return on total assets (c) Company Choose Numerator: Return on Total Assets Choose Denominator - Return on Total Assets = Return on total assets 09 0 % Barco Kyan 2A Tot Asset Turn 2A Ret On Com Stock > 2a. For both companies compute the profit margin ratio of total asset turnover return on total assets and return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 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 Aatio 2A Tot Asset 2A Reton Tot Turn Assets 2A Het On Com Stock 2A Price on Ratie 2A Div Yield 20 For both companies compute the return on common stockholders' equity (d) Company Return On Common Stechholders' Equity Choose Denominator Choose Numerator: Return On Common Stockholders' Equity Return On common stockholders equity Barco Kyan ( 2A Reton Tot Assets 2A Price Eam Ratio > 20. For both companies compute the () profit margin ratio, (b) total asset turnover (return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their le 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 2A Ret On 2A Pnce Earn 2A Div Yield Ratio Turn Reg 28 Assets Com Stock Ratio Assuming that share and each company's stock can be purchased at $105 per share, compute their price earnings ratios. (e) Price-Earnings Ratio Company Choose Numerator: Choose Denominator: - Price-Earnings Ratio = Price earnings ratio Barco O times Kyan 1 O times 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 $105 per share, compute thelr(e) price.earings 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 Tot Asset 2A Ret on Tot Turn Assets 2A Prof Mar Ratio 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 Assuming that each company's stock can be purchased at $105 per share, compute their dividend yields. (0) Company Dividend Yield Choose Denominator: Choose Numerator: = Dividend Yield = Dividend yield 0 % Barco Kyan = 0 % Problem 17-5A Part 2 20. For both companies compute the (aprofit margin ratio. (b) total asset turnover, (return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $105 per share, compute their price-carnings ratios and (dividend ylelds. (Do not round intermediate calculations, Round your answers to 2 decimal places.) 2b. Identity 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 Retoni Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Diy Yield Reg 20 Identify which company's stock you would recommend as the better investment. The buttet investment