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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 35,000 Accounts receivable, net 35,400 57,400 Current notes receivable (trade) 9,300 7800 Merchandise inventory 84.440 128.500 Prepaid expenses 5.600 7.500 Plant assets, net 350,000 305,400 Total assets $506, 740 $541,600 Barco Kyan Company Compan Data from the current year's income statement Sales $770,000 $885,20 Cost of goods sold 593,100 632,50 Interest expense 8,900 18.00 Income tax expense 14,800 24,43 Net Income 153,200 210.26 Basic earnings per share 4.03 5.1 Cash dividends per share 3.79 0 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $ 90,300 79,800 101.000 190,000 206,000 171,600 144,300 $506,740 5541,600 Beginning-of-year balance sheet data Accounts receivable, net Current notes receivable (trade) Merchandise inventory Total assets Common stock, 5 par value Retained earnings $ 30,800 $ 54,20 57,600 / 117,40 408,000 392,50 190,000 206,00 162,420 100,07 2a. For both companies compute the profit margin ratio, (b) total asset turnover, (dreturn on total assets, and (c) return on common stockholders' equity. Assuming that share and each company's stock can be purchased at $95 per share, compute their (e) price- earnings ratios and dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment 2A Ret On A Price Eam 2A Div Yield Ratio Reg 2B 2A Pro Marg 2A Tot Asset 2A Ret on Tot Ratio Turn Assets Com Stock Equity For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio Choose Denominator: - Profit margin ratio Profit margin ratio Barco Kyan A Pro Mare Ratio 2A Tot Asset Turn > 2A Ret On A Price Earn Ratio 2A Div Yield Req 2B 2A Pro Marg 2A Tot Asset 2A Ret on Tot Com Stock Ratio Turn Assets Equity For both companies compute the total asset turnover Total Asset Turnover Choose Denominator: Company Choose Numerator: - Total Asset Turnover Total asset turnover - Barco 0 times O times Kyan 2A Pro Mary Ratle 2A Reton Tot Assets > 2A Price Earn Ratio 2A Div Yield Req 2B 2A Pro Marg 2A Tot Asset 2A Ret on T 2A Ret On Ratio Turn Com Stock Assets Equity For both companies compute the return on total assets. (c) Return on Total Assets Choose Denominator: Company Choose Numerator: = Return on Total Assets = Return on total assets 0 % Barco Kyan 0 % 2A Tot Asset Turn 2A Ret On Com Stock Equity > 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock Equity 2A Price Earn Ratio 2A Div Yield Reg 2B For both companies compute the return on common stockholders' equity. (d) Company Choose Numerator: Return On Common Stockholders' Equity Choose Denominator - Return On Common Stockholders' Equity Return On common stockholders' equity Barco Kyan ( 2A Reton Tot Assets 2A Price Earn Ratio > 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Ratio Com Stock Req 2B Turn Assets Ratio Equity Assuming that share and each company's stock can be purchased at $95 per share, compute their price-earnings ratios. Price-Earnings Ratio Choose Denominator: Company Choose Numerator: - Price-Earnings Ratio Price-earnings ratio O times O times Barco Kyan 2A Pro Marg 2A Tot Asset 2A Ret on Tot 2A Ret On ZA Price Earn Com Stock 2a Dil Yield Req 2B Ratio Turn Assets Ratio Equity Assuming that share and each company's stock can be purchased at $95 per share, compute their dividend yields. (1) Company Dividend Yield Choose Denominator: Choose Numerator: = Dividend Yield = Dividend yield Barco Kyan 0 % prung u n you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Pro Marg Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 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 2A Div Yield Ree 28