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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. Cash Barco Kyan Company Company Data from the current year-end balance sheets Assets $ 20,000 $ 31,000 Accounts receivable, net 34,400 53,400 Merchandise inventory 84,740 132,500 Prepaid expenses 5,200 7,650 Plant assets, net 280,000 304,400 Total assets $424,340 $528,950 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $878,200 Cost of goods sold 595, 100 648,500 Interest expense 9,200 10,000 Income tax expense 14,800 24,244 Net income 150,900 195,456 Basic earnings per share 4.19 4.32 Cash dividends per share 3.75 4.00 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 62,340 $ 95,300 78,800 115,000 180,000 226,000 103, 200 92,650 $424,340 $528,950 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 25,800 $ 54/200 55,600 113,400 418,000 422,500 180,000 226,000 87,300 77994 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 $80 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 Prof Mar Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Turn Assets 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 1 Choose Denominator: = Profit margin ratio = Profit margin ratio 0 % 0 % 1 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 For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover | Choose Denominator: = Total Asset Turnover = Total asset turnover 0 times 0 times 11 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 For both companies compute the return on total assets. (c) Company Choose Numerator: = Return on Total Assets | Choose Denominator: 1 1 1 Return on Total Assets = Return on total assets 0 % 0 % 11 Barco yan 11 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 = 0 % Barco Kyan 1 0% Ret on Tot Assets 2A Price Earn Ratio > 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 $80 per share, compute their price-earnings ratios. (e) Company Choose Numerator: Price-Earnings Ratio 1 Choose Denominator: 1 Price-Earnings Ratio Price-earnings ratio 0 times 0 times 1 Barco Kyan 1 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 $80 per share, compute their dividend yields. (f) Company Choose Numerator: Dividend Yield I Choose Denominator: 1 = Dividend Yield = Dividend yield 11 Barco Kyan 0 % 0 % Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn 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