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 Data from the current year's balance sheets income statement Assets Sales $760,000 Cash Accounts receivable, net 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 84,840 5,800 360,000 $ 505,540 $ 532,850 $ 505,540 $ 532,850 $ 18,500 36,400 $ 30,000 Cost of goods sold 59,400 130,500 Interest expense 589,100 8,900 $ 910,200 634,500 14,000 Income tax expense 14,608 7,550 305,400 Net income 147,392 Basic earnings per share Cash dividends per share 4.09 3.79 25,128 236,572 6.04 4.03 data $ 61,340 $ 94,300 Accounts receivable, net 84,800 109,000 180,000 196,000 Total assets 179,400 133,550 Beginning-of-year balance sheet Merchandise inventory Common stock, $5 par value Retained earnings $ 28,800 $ 54,200 59,600 109,400 438,000 382,500 180,000 196,000 168,448 54,954 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 (*) 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 Turn Assets Equity For both companies compute the profit margin ratio. (a) Company Barco Kyan Numerator: Profit Margin Ratio Denominator: 2A Price Earn Ratio 2A Div Yield Req 2B Profit margin ratio = Profit margin ratio = % = % 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 2A Price Earn Equity 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 = times times 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 2A Price Earn Equity Ratio 2A Div Yield Req 2B 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 % % 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. 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 1 2A Price Earn Ratio 2A Div Yield Req 2B Return On Equity Denominator Return On Equity Return On equity % % 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. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On Ratio Turn Assets Equity 2A Price Earn 2A Div Yield Req 2B Ratio 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: Price-Earnings Ratio Price-earnings ratio times times 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 2A Div Yield Ratio 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 / % % 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 2A Div Yield Ratio Req 2B Identify which company's stock you would recommend as the better investment. The better investment