! 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 Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 30,000 Accounts receivable, net 33,400 52,400 Merchandise inventory 84,540 136,500 Prepaid expenses 5,900 7,600 Plant assets, net 320,000 307,400 Total assets $463,340 $533,900 Barco Kyan Company Company Data from the current year's income statement Sales $760,000 $903, 200 Cost of goods sold 589,100 642,500 Interest expense 9,300 10,000 Income tax expense 14,608 24, 935 Net income 146,992 225, 765 Basic earnings per share 4.59 4.99 Cash dividends per share 3.77 4.02 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 68,340 $ 92,300 81,800 105,000 160,000 226,000 153,200 110,600 $463,340 $533,900 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 30,800 $ 51, 200 55,600 113,400 408,000 422,500 160,000 226,000 126,848 66.539 2a. For both companies compute the (a) 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 $100 per share, compute their (e) price-earnings ratios and (f 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 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 profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio | Choose Denominator: Profit margin ratio Profit margin ratio Barco / % Kyan 1 = % 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 For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover | Choose Denominator: Total Asset Turnover Total asset turnover 1 Barco / times Kyan 1 times 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 Req 2B For both companies compute the return on total assets. (c) Return on Total Assets 1 Choose Denominator: Company Choose Numerator: = Return on Total Assets Return on total assets Barco / % Kyan 1 % 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 Req 2B For both companies compute the return on common stockholders' equity. (d) Return On Common Stockholders' Equity 1 Choose Denominator Company Choose Numerator: Return On Common Stockholders' Equity Return On common stockholders' equity 1 Barco / % Kyan % 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 Req 2B Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. (e) Company Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: = Price-Earnings Ratio = Price-earnings ratio times Barco 1 Kyan 1 times 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 Req 2B Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. (f) Company Dividend Yield 1 Choose Denominator: Choose Numerator: Dividend Yield Dividend yield = Barco = % Kyan % 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 Req 2B Identify which company's stock you would recommend as the better investment. The better investment