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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

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 Company Kyan Barco Company Kyan Company Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $770,000 $880, 200 Cash $19,500 $ 34,000 Cost of goods sold 585, 100 632 500 Accounts receivable, net 46,500 64,600 84,440 132,500 5,000 6,950 290,000 304,400 $445,440 $542,450 Interest expense 7,900 13,000 Income tax expense 14,808 Net income 162,288 24 300 218,400 Basic earnings per share 4.51 5.11 3.81 3.93 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 $ 61,340 $93, 300 101,000 206,000 se,see 180,000 123,300 $445,440 $542,450 142,150 Accounts receivable, net Cash dividends per share Beginning-of-year balance sheet data $ 29,800 $ 541200 55,600 107,400 398,000 382 500 180,000 2067 98, 300 93600 Merchandise inventory Total assets Common stock, $5 par value Retained earnings 2a. For both companies compute the (e) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (c) return an common stockholders' equity, Assuming that each company's stock can be purchased at $75 per share, compute their (e price-earnings ratios and in dividend yields (Do not round Intermediate calculations. Round your answers to 2 decimal places.) b. Identify which company's stock you would recommend as the better investment Complete this question by entering your answers in the tabs below. Turn 24 Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Vield Req 28 For both companies compute the profit margin ratio. (a) Company Profit Margin Ratio Choose Numerator: 7 Choose Denominator: Barco Kyan " Profit margin ratio Profit margin ratio 2A Tot Asset Tum > 0% 096 Complete this question by entering your answers in the tabs below. 2A Ret On Com Stock ZA Price Earn Ratio 2A Div Vield Req 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets For both companies compute the total asset turnover (b) Company Choose Numerator: Barco Kyan Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover 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 Assets 2A Ret On Com Stock 2A Price Earn Ratio ZA Div Yield Req 28 For both companies compute the return on total assets. (c) Company Choose Numerator: Barco Kyan Return on Total Assets Choose Denominator: Return on Total Assets Return on total assets 096 0% 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 Com Stock 2A Price Earn Ratio 2A Div Vield Req 28 For both companies compute the return on common stockholders' equity. (d) Company Barco Kyan Choose Numerator. Return On Common Stockholders' Equity Choose Denominator Return On Common Stockholders' Equity Return on common stockholders' equity 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 2A Price Earn 2A Div Vield Com Stock Ratio Req 28 Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Company Choose Numerator: Barco Kyan Price-Earnings Ratio Choose Denominator: Price-Earnings Ratio Price-Earnings Ratio " Otimes 0 times Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Ratio Turn Assets 2A Ret On 2A Price Earn Com Stock Ratio 2A Div Vield Req 28 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Company Choose Numerator: Barco Kyan Dividend Yield Choose Denominator: Dividend Yield = Dividend Yield 0 image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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