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 Company Kyan Company Barco Company Data from the current year- Kyan Company Data from the current year's end balance sheets Assets Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Cash $ 20,000 $ 37,000 Accounts receivable, net 36,400 84,540 5,400 370,000 $ 516, 340 $ 553,300 57,400 140, 500 7,000 311, 400 income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet $ 780,000 $ 884,200 584,100 638,500 7,900 14,992 12,000 24,410 173,008 209, 290 5.09 4.43 3.78 3.99 data $ 63,340 83,800 $ 94, 300 115,000 Accounts receivable, net $ 30,800 Merchandise inventory 55,600 $ 53,200 111, 400 170,000 199,200 236,000 Total assets 448,000 402,500 108,000 Common stock, $5 par value 170,000 236,000 $ 516, 340 S 553,300 Retained earnings 154,712 87,038 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and (f) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator: Profit margin ratio = Profit margin ratio 0% 0% 2A Tot Asset Turn 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratios and (A) dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers In the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Company Numerator: Barco Kyan Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover 0 times 0 times <2a prof mar ratio 2a ret on tot assets> Complete this question by entering your answers In the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. (c) Company Numerator: Barco Kyan Return on Total Assets Denominator: Return on Total Assets == Return on total assets = 0% 0% <2a tot asset turn 2a ret on equity> Complete this question by entering your answers In the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity For both companies compute the return on equity. (d) Company Numerator: Barco Kyan 2A Price Earn Ratio 2A Div Yield Req 2B Return On Equity Denominator Return On Equity = Return On equity 0% 0% < 2A Ret on Tot Assets 2A Price Earn Ratio > Complete this question by entering your answers In the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Assets Equity 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. (e) Company Barco Kyan Numerator: Price-Earnings Ratio Denominator: =Q Price-Earnings Ratio Price-earnings ratio 0 times 2A Ret On Equity 2A Div Yield > 0 times Complete this question by entering your answers In the tabs below. 2A Prof Mar 2A Tot Asset Ratio Turn 2A Ret on Tot Assets 2A Ret On 2A Price Earn Equity Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. (f) Company Barco Kyan Numerator: Dividend Yield Denominator: Dividend Yield Dividend yield 0% 0% <2a price earn ratio req 2b> Complete this question by entering your answers In the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On 2A Price Earn Equity Ratio 2A Div Yield Rel 2B Identify which company's stock you would recommend as the better investment. The better investment < 2A Div Yield Req 28