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! Required information The following information applies to the questions displayed below) Summary information from the financial statements of two companies competing in the same

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! Required information 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 Company Company Data from the current year-end balance sheets Data from the current years income statement Assets Sales 5770,000 $880,290 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632 500 Accounts receivable. net 46,500 64,600 Interest expense 7,990 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 Total assets $445,440 5542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, 55 par value Retained earnings Total liabilities and equity Beginning-of-year balance sheet data $ 61,340 $ 93,300 Accounts receivable, net 39,800 101,000 Merchandise inventory 180,000 206,000 Total assets 123,300 142.159 common stock, 35 par value 5445,440 $542,450 Retained earnings $ 29,800 $ 54,200 55,600 107,400 398,090 382500 180,000 206,000 98,300 93 600 20. For both companies compute the fal profit margin ratio, (b) total asset turnover (c) return on total assets, and (d) return on common stockholders' equity Assuming that each company's stock can be purchased at $75 per share, compute their(e)price-earings 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 2A Ret on Tot Tum Assets ZA Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 20 For both companies compute the profit margin ratio. (a) Company Choose Numerator Profit Margin Ratio Choose Denominator Barco Kyan -Profit margin ratio Profit margin ratio 0 0 2A Tot Asset Turn >

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