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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

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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 Conpany Company Kyan Barco Data fron the current year Asset Cash Accounts receivable, net Current notes receivable (trade) Merchandise inventory -end balance Data from the current year s income statement Sales $800,000 $881,200 584,100 636,500 9,200 17,000 15,377 24,327 191,323 203,373 $ 21,00033,000 Cost of goods sold 39,400 52,400 Interest expense 10,000 94,740 132,500 Net income 9,800 Income tax expense 5.634.9 3.76 5,600 7,450 Basic earnings per share 330,000 307,400 cash dividends per share Plant assets, net Total assets 3.94 S490,740 $541,550 Beginning-of-year balance sheet data Accounts receivable, net 31,800 50,2010 55,600 111.400 Liabilities and Equity Current liabilities Long-term notes payable Conmon stock, $5 par value s 70,340 $ 94,300 Current notes receivable (trade) 84,800 103,000 Merchandise inventory 170,000 206,000 Total assets 398,000 372,500 170,000 206 000 102,117 97,205 S,60039,250 Common stock, $5 par value $490,740 $541.550 Retained earnings Total liabilities and equity 2a. For both companies compute the ( profit margin ratio, ( total asset turnover, (cj return on total assets, and (d) return on common stockholders equity. Assuming that share and 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 Ret On 2A Pro Marg 2A Tot Asset 2A Ret on Tot Turn Com Stock2A Price Earn 2A Div Yield Req 2B Ratio Assets Ratio For both companies compute the profit margin ratio. Profit Margin Ra Choose Denominator: Profit margin ratio Profit margin ratio Barco Kyan A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On Com Stock Price Earn Ratio 2A Pro Marg Ratio 2A Tot Asset 12A Ret on Tot 2A Div Yield Req 2B Turn Assets For both companies compute the total asset turnover Total Asset Turnover Company Choose Numerator: Choose Denominator: Total Asset Turnover Total asset turnover 0 times 0 times Barco Kyan 2A Ret On Com Stock 2A Pro Marg 2A Tot Asset 2A Ret on Tot Turn 2A Div Yield Req 2B Ratio Assets Ratio For both companies compute the return on total assets. Return on Total Assets Company Choose Numerator: Choose Denominator: Return on Total Assets Returm on total assets 01% Barco Kyan 01% 1-2A Ret On | Com Stock Equity 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Price Earn Ratio 2A Div YieldReq 28 For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity Company Choose Numerator: Choose Denominator - Return On Common Stockholders' Equity Return on common stockholders' equity Kyan 2A Ret On2A Price Earn2A Div Yield Ratio 2A Pro Marg Ratio 2A Tot Asset2A Ret on Tot Com Stock Equity Assuming that share and each company's stock can be purchased at $80 per share, compute their pr Turn Assets Company Choose Numerator: Choose Denominator = Price-Earnings Ratio - Price-earnings ratio Barco 0 times 01 times Kyan On2A Price Earn 2A Div Yield 2A Ret On Com Stock 2A Pro Marg Ratio 2A Tot Asset Turn 2A Ret on Tot Assets Ratio Equity Assuming that share and each company's stock can be purchased at $75 per share, compute their di Dividend Yield Company Choose Numerator: Choose Denominator: = Dividend Yield Dividend yield 01% 01% Kyan 2A Ret On2A Price Earn Com Stock 2A Div YieldReq 2B 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Ratio Turn Assets Identify which company's stock you would recommend as the better investment. The better investment

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