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 Data from the current year-end Barco Company Kyan Company balance sheets Data from the current year's income statement Assets Sales $260,000 Cash $ 22,500 $31,000 Cost of goods sold 595,100 Accounts receivable, net 35,400 55,400 Interest expense 7,600 $923,200 644,500 19,000 Merchandise inventory 84,340 134,500 5,200 360,000 $ 507,440 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 $ 62,340 78,800 210,000 156,300 $ 507,440 $103,300 236,000 90,000 $ 538,300 Beginning-of-year balance sheet data. Total assets 7,000 310,400 $538,300 Income tax expense Net Income 14,608 25,487 142,692 234,213 Basic earnings per share 3.40 4.961 Cash dividends per share. 3.77 4.01 Accounts receivable, net $27,800 $ 56,200 109,000 Merchandise inventory 53,600 448,000 115,400 402,500 Common stock, $5 par value 210,000 236,000 Retained earnings 171,948 45,059 20. 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 $75 per share, compute their (e) price-earnings ratios and (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 28 For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator Profit margin ratio Profit margin ratio w 7 1 0% 0% 2A Prof Mar Ratio 2A Tot Asset Turn > Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset Ratio Turn 2A Ret on Tot 2A Ret On 2A Price Earn Assets Equity 2A Div Yield Ratio Req 28 For both companies compute the total asset turnover (b) Company Numerator: Barco Kyan Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover i 0 times 0 times < 2A Prof Mar Ratio 2A Ret on Tot Assets > 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 2A Price Earn Ratio Equity ZA Div Yield Req 28 For both companies compute the return on total assets. (c) Company Barco Kyan Numerator: Return on Total Assets Denominator: Return on Total Assets Return on total assets 0% 0% 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 28 For both companies compute the return on equity. (d) Company Numerator: Barco Kyan 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. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot 2A Ret On Turn Assets Equity ZA 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. (e) Company Barco Kyani Numerator: Price Earnings Ratio Denominator: = Price Earnings Ratio Price-earnings ratio == 0 times 0 times Complete this question by entering your answers in the tabs below. Turn 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio 2A Ret On Assets Equity Ratio 2A Price Earn 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. (1) Company Barco Kyan Numerator Dividend Yield Denominator: Dividend Yield = Dividend yield 0% 0% 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 2A Price Earn Equity Ratio 2A Div Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment < 2A Div Yield