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 Barca Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $818,000 5916,200 Cash $ 20,500 $ 33,000 Cost of goods sold 588,1ee 644,5ee Accounts receivable, net 39,400 56,400 Interest expense 7,900 15,800 Merchandise inventory 84,840 138,500 Income tax expense 15,569 25,294 Prepaid expenses 5,680 7,380 Net income 198,431 231, 486 Plant assets, net 350,000 306,400 Basic earnings per share 5.22 SL 36 Total assets $500,340 $541,600 Cash dividends per share 3.73 3.91 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,348 $100,308 Accounts receivable, net $ 25,888 $ 54,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,6ee 117,40e Common stock, $5 par value 190,000 216,000 Total assets 388,000 382,500 Retained earnings 158,200 114,300 Common stock, $5 par value 190,000 216,000 Total liabilities and equity $500,348 $541,680 Retained earnings 101,509 51.686 2a. For both companies compute the (a) profit margin ratio, (total asset turnover, (a return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (c) price-earnings ratios and individend 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 Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 28 Assuming that share and each company's stock can be purchased at $75 per share, compute their price earnings ratios Price-Earningu. Ratio Company Choose Numaraton Checs. Denominator Price-amingRatio Price earnings ratio Barco Otimes Kyan Oms 2a. For both companies compute the (al profit margin ratio. (b) total asset turnover, (return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price earnings ratlos 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 Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 20 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. 10 Company Choose Numarator Dlvidand Yield Choose Denominator Barco Dividend Yield - Dividend yield 01% 0 Kyan 2A Price Earn Ratio Reg 28 > 2a. For both companies compute the (a) profit margin ratio. (b) total asset turnover (a return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute thelr(e) price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identity 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 Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Reg 28 Identify which company's stock you would recommend as the better investment. The beber investment 2A Div Yield
