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 $ 19,500 $ 31,000 Accounts receivable, net 34,480 54,400 Merchandise inventory 84,942 130,582 Prepaid expenses 5,889 7,880 Plant assets, net 330,890 306,480 Total assets $474,640 $529, 382 Barco Kyan Company Company Data from the current year's income statement Sales $ 780,000 $898, 200 Cost of goods sold 586,199 648 500 Interest expense 9,200 13, Income tax expense 14,992 24797 Net income 169,708 211,903 Basic earnings per share 4.99 4.41 Cash dividends per share 3.82 3.97 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340 $183,380 85,890 115,880 178,890 196,800 154,582 115,882 $474,640 $529, 382 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 63,629 458,282 170,880 114,672 $ 51,200 189,400 372,500 196,899 58.721 LAPAD 2A Price Earn 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock Ratio 2A Div Yield Reg 28 For both companies compute the profit margin ratio. Profit Margin Ratio Choose Denominator: Company Choose Numerator: = Profit margin ratio Profit margin ratio Barco Kyan 2A Prof Mar Ratio 2A Tot Asset Tum > 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio Reg 2B | 2A Div Yield For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover I Choose Denominator: = Total Asset Turnover = Total asset turnover Barco o times Kyan oltimes 2A Prof Mar Ratio 2A Ret on Tot Assets > Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Price Earn 2A Ret On Com Stock 2A Div Yield Reg 28 Ratio For both companies compute the return on total assets. Return on Total Assets 1 Choose Denominator: Company Choose Numerator: = Return on Total Assets = Return on total assets Barco Kyan 2A Tot Asset Turn 2A Ret On Com Stock > 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on common stockholders' equity. (d) Company Return On Common Stockholders' Equity. 1 Choose Denominator Choose Numerator: Return On Common Stockholders' Equity Return On common stockholders' equity Barco Kyan 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 2B Assuming that each company's stock can be purchased at $90 per share, compute their dividend yields. Dividend Yield Choose Denominator: Company Choose Numerator: = Dividend Yield = Dividend yield Barco Kyan * Answer is not complete. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 2B Identify which company's stock you would recommend as the better investment. The better investment Kyan company