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 $ 20,000$ 34,000 Accounts receivable, net 33,400 55,400 Current notes receivable (trade) 10,000 8,600 Merchandise inventory 84,440 138,500 Prepaid expenses 5,300 7,300 Plant assets, net 290,000 306,400 Total assets $ 443, 140 $ 550,200 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 64,340$ 90,300 80,800 117,000 190,000 246,000 -108,000 96,900 $443, 140 $ 550,200 Data from the current year's income statement Sales $800,000 $ 915,200 Cost of goods sold 587,100 634,500 Interest expense 8,100 16,000 Income tax expense 15,377 25,266 Net income 189,423 239, 434 Basic earnings per share 4.98 4.87 Cash dividends per share 3.71 3.92 Beginning-of-year balance sheet data Accounts receivable, net $ 32,800 $ 56,200 Current notes receivable (trade) Merchandise inventory 63,600 107,400 Total assets 448,000 402, 500 Common stock, $5 par value 190,000 246,000 Retained earnings 59,557 50,330 2a. For both companies compute the profit margin ratio, (o total asset turnover return on total assets, and (0) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their price-camins 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. Merchandise inventory Total assets Common stock, $5 par value Retained earnings 63,600 107,400 448,000 482,500 190,000 246,000 59,557 50,330 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover (4 return on total assets, ar return on common stockholders' equity. Assuming that share and each company's stock can be purchased at share, compute their (e) price-earnings ratios and ( dividend yields. (Do not round intermediate calculations. 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 Pro 2A Tot 2A Ret on 2A Ret 2A Price 2A Div Marg Asset Tot On Com Earn Yield Req 2B For both companies compute the profit margin ratio. (a) Profit Margin Ratio Choose Choose Profit Company Numerator: Denominator: margin + Profit margin ratio 0 % Barco = 01% Kyan Pro Mar Ratio 2A Tot Asset Turn > Beginning-of-year balance sheet data Accounts receivable, net $ 32,800 $ 56,200 Current notes receivable 0 (trade) Merchandise inventory 63,600 107,400 Total assets 448,000 402, 500 Common stock, $5 par value 190,000 246,000 Retained earnings 59,557 50,330 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 per share, compute their (c) 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 Pro A Tot 2A Ret on 2A Ret 2A Price 2A DIV Marg Asset Tot On Com Earn Yield Reg 2B For both companies compute the total asset turnover (b) Total Asset Turnover Total Choose Company Choose Denominator: Asset Numerator: Turnover Total asset turnover Barco O times O times Kyan @ Cullell HULUS receivable (trade) Merchandise inventory Total assets Common stock, $5 par value Retained earnings 63,600 107,400 448,000 482,500 190,000 246,000 59,557 50,330 2a. For both companies compute the profit margin ratio. (b) total asset turnover, (return on total assets, and (d) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 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. ITot 2A Pro 2A Tot 2A Ret on 2A Ret 2A Price 2A Div Marg Asset Yiot On Com Eam Yield Req 28 For both companies compute the return on total assets. (c) Return on Total Assets Choose Choose Return on Total Company Numerator: Denominator: Assets = Return on total assets Barco 17 0 % Kyan 1 0 % 1 Beginning-of-year balance sheet data Accounts receivable, net $ 32,800 $ 56,200 Current notes receivable (trade) Merchandise inventory 63,600 107,400 Total assets 448,000 402,500 Common stock, $5 par value 190,000 246,000 Retained earnings 59,557 50,330 2a. For both companies compute the profit margin ratio. (b) total asset turnover (return on total assets, and return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $70 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. On con 2A Pro 2A Tot 2A Ret on 2A Ret 2A Price ZA Div Marg Asset Tot Earn Req 2B Yield For both companies compute the return on common stockholders' equity. (d) Return on Common Stockholders' Equity Return On Common Compan Choose Numerator: Choose Denominator Stockholders' Equity Return On common stockholders' equity Barco Kyan ola 0% 40