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 Kyan Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $770,000 $880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 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 84,440 5,000 290,000 $ 445,440 $ 542,450 $ 61,340 $ 93,300 Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data 101,000 Accounts receivable, net Merchandise inventory 206,000 Total assets 142,150 Total liabilities and equity $ 445,440 $ 542,450 Common stock, $5 par value Retained earnings 80,800 180,000 123,300 64,600 132,500 Interest expense 7,900 13,000 14,800 24,300 6,950 304,400 162,200 210,400 4.51 5.11 3.81 3.93 $ 29,800 $ 54,200 55,600 107,400 398,000 382,500 180,000 206,000 98,300 93,600 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 $75 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. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Equity Turn Assets For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: 2A Price Earn Ratio 2A Div Yield Req 2B Profit Margin Ratio Denominator: Profit margin ratio Profit margin ratio % % Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the total asset turnover (b) Company Barco Kyan Numerator: / Total Asset Turnover Denominator: Total Asset Turnover Total asset turnover times times 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 = % % 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 Equity 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on equity. (d) Company Barco Kyan Numerator: 1 1 Return On Equity Denominator Return On Equity Return on equity = % % 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 Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Company Numerator: Price-Earnings Ratio Denominator: Barco Kyan Price-Earnings Ratio = Price-Earnings Ratio = times 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 Equity 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Company Barco Kyan Numerator: Dividend Yield Denominator: Dividend Yield Dividend Yield % % 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 Identify which company's stock you would recommend as the better investment. The better investment