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Summary information from the financial statements of two companies competing in the same industry follows. of 2 Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 20,500 $ 35,000 Accounts receivable, net 36,400 59,400 Merchandise inventory 84,240 134,500 Prepaid expenses 5,500 7,050 Plant assets, net 290,000 304,400 Total assets $436,640 $540,350 Barco Kyon Company Company Data from the current year's income statement Sales $800,000 $994,200 Cost of goods sold 589,100 652.500 Interest expense 8,600 16,000 Income tax expense 15,377 24.962 Net income 186,923 210,738 Basic earnings per share 4.25 4.66 Cash dividends per share 3.72 3.95 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 65,340 $ 98,300 83,800 113,000 220,000 226,000 67,500 103,050 $436,640 $540, 350 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 27,800 $ 51,200 55,600 117,400 448,000 372,500 220,000 226,000 44,257 70.1852 I thealbrofit marcin ratio total accet turnover return on total assets and return on mm 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. ( return on total assets, and (d) return on com stockholders' equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings and (1) 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. Part 2 of 2 Complete this question by entering your answers in the tabs below. 25 points 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Company Choose Numerator: = Profit margin ratio = Profit margin ratio Barco % Kyan QA Prut Rail 2A Tot Asset Turn > 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (return on total assets, and (d) return on comm stockholders' equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings rat 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. rt 2 of 2 Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio nts 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio Req 2B 2A Div Yield For both companies compute the total asset turnover (b) Company Choose Numerator: Total Asset Turnover 1 Choose Denominator: Total Asset Turnover = Total asset turnover times Barco 1 Kyan times 2 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (c) return on total assets, and (d) return on commor stockholders' equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings ratio and (1) 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. rt 2 of 2 Complete this question by entering your answers in the tabs below. nts 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on total assets. (c) Company Choose Numerator: Return on Total Assets Choose Denominator: = Return on Total Assets = Return on total assets Barco % Kyan % 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (o return on total assets, and (c) return on common stockholders' equity. Assuming that each company's stock can be purchased at $100 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 of 2 Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the return on common stockholders' equity, (d) Company Return On Common Stockholders' Equity Choose Denominator Choose Numerator: - Return On Common Stockholders' Equity Return On common stockholders' equity Barco Kyan 2 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover. (d) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $100 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 art 2 of 2 Complete this question by entering your answers in the tabs below. 5 Ints 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that share and each company's stock can be purchased at $100 per share, compute their price-earnings ratios. e) Price Farnings Ratio 1 Choose Denominator: Company Choose Numerator: Price-Earnings Ratio Price-earnings ratio times Barco Kyan times 2 20. For both companies compute the (a) profit margin ratio, (b) total asset turnover. ( return on total assets, and (d) return on com stockholders' equity. Assuming that each company's stock can be purchased at $100 per share, compute their (e) price-earnings 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. Part 2 of 2 Complete this question by entering your answers in the tabs below. 5 pints 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B Assuming that each company's stock can be purchased at $100 per share, compute their dividend yields. (0) Dividend Yield 1 Choose Denominator: Company Choose Numerator: Dividend Yield Dividend yield = % Barco Kyan % Quiz 1 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (a return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $100 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. 2 of 2 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 Yield Req 2B Identify which company's stock you would recommend as the better investment. The better investment