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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 Data from the current year's balance sheets income statement Assets Sales $790,000 $ 890,200 Cash $ 21,000 $ 33,000 cost of goods sold 595, 100 646,500 Accounts receivable, net 34,400 58,400 Interest expense 8,100 13,000 Merchandise inventory 84,840 136,500 Income tax expense 15,185 24,576 Prepaid expenses 5,300 7,800 Net Income 171,615 206,124 Plant assets, net 340,000 312,400 Basic earnings per share 4.09 Total assets $ 485,540 5 548,100 Cash dividends per share 3.72 3.93 Liabilities and Equity Beginning-of-year balance sheet Current abilities $ 69,340 $92,300 Accounts receivable, net $31.000 3.56,200 Long-ter notes payable 82,800 113,000 Merchandise inventory 63,600 107, 400 Connon stock, 55 par value 210,000 216,000 Total assets 458,000 372,500 Retained earnings 123,400 126.000 Common stock, 35 par value 210,000 216,000 Total liabilities and equity 3485,540 5 540,100 Retained earnings 100,025 90,452 .4 data 2a. For both companies compute the profit margin ratio, (b) total asset turnover (return on total assets, and return on equity Assuming that each company's stock can be purchased at $95 per share, compute their price-carnings ratios and ( dividend yields 2b. Identify which company's stock you would recommend as the better investment oces Complete this question by entering your answers in the tabs below. Reg 28 2A Prof Mar 24 Tot Asset 2 Ret on tot 2 Ret On A Price Eam 24 Div Yield Ratio Tum Assets Equity Ratio For both companies compute the return on equity (0) Return On Equity Company Numerator Denominator Not income Average total equity Barco 171,615 Kyan 206,124 Return On Equity Return On equity 707 707

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