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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

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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 follows. Barco Barco Kyan Kyan Company Company Company Company Data from the current year- Data from the current year's end balance sheets income statement Assets Sales $ 790,000 $928,200 Cash $ 18,000 $ 34,000 Cost of goods sold 591, 100 640, 500 Accounts receivable, net 38,400 58,400 Interest expense 9,100 12,000 Merchandise inventory 84,640 130,500 Income tax expense 15,185 25,625 Prepaid expenses 5,300 6,950 Net income 174,615 250, 075 Plant assets, net 340,000 313,480 Basic earnings per share 4.37 5.79 Total assets $ 486,340 $ 543,250 Cash dividends per share 3.70 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current liabilities $ 65,340 $ 100,300 Accounts receivable, net $ 39,800 $ 51,200 Long-term notes payable 84.800 107,000 Merchandise inventory 59,600 109,400 Common stock, $5 par value 200,000 216,000 Total assets 388,000 382,500 Retained earnings 136,200 119,950 Common stock, $5 par value 200,000 216,000 Total liabilities and equity $ 486,340 5 543,250 Retained earnings 109,585 43, 107 20. For both companies compute the profit margin ratio. (6) total asset turnover. (a return on total assets, and (d) return on equity Assuming that each company's stock can be purchased at $80 per share, compute their le price-earnings ratios and ( dividend yields 25. Identity 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 Ratio 2A Tot Asset 2A Reton Tot Tum Assets 2A Ret On Equity 2A Price tamn Ratio 2A Div Yield Reg 20 For both companies compute the profit margin ratio. (0) Company Pront Margin Ratio Denominator Numerator Profit margin ratio Profit margin ratio 1 1 Barco Kyan % 2A Tot Asset Turn >

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