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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 Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 34,000 Accounts receivable, net 46,500 64,600 Merchandise inventory 84,440 132,500 Prepaid expenses 5,000 6,950 Plant assets, net 290,000 304,400 Total assets $445,440 $542,450 Marco Ryan Company Company Data from the current year's income statement Sales 3770,000 $880,200 Cost of goods sold 585,100 632,500 Interest expense 7,900 13,000 Income tax expense 14,800 24,300 Net Income 162,200 210,400 4.51 5.11 Banie varnings per share Cash dividende per share Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 93,300 80,800 101,000 180,000 206,000 123,300 142, 150 $445,440 $542,450 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Connon stock, $5 par value Retained earnings $ 29,800 $ 54,200 55,600 107.400 398,000 382,500 180,000 206.000 98,300 93,600 1. For both companies compute the (a) profit margin ratio. (b) total asset turnover, (dreturn on total assets, and (dreturn on common ockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price earnings ratios id (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1. Identify which company's stock you would recommend as the better investment. 2a. For both companies compute the () profit margin ratio, (o) total asset turnover, (d) return on total assets, and return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their price-earnings ratios 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 Complete this question by entering your answers in the tabs below. 2A Ret On Com Stock 2A Div Yield 2A Prof Mar Ratio 2A Tot Asset 2A Ret on Tot Turn Assets 2A Price Earn Ratio Reg 28 For both companies compute the profit margin ratio, Profit Margin Ratio Choose Denominator: Profit margin ratio Profit margin ratio Company Choose Numerator: = 1 # Barco Kyan 2A Tot Asset Turn > S2A Ret on Tot Assets 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 Reg 2B Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings (e) Company Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: = 1 Price-Earnings Ratio Price-Earnings Ratio times times / Barco 1 Kyan On Com Stock 2A Div Yield 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 Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 28 Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. (1) Company Dividend Yield Choose Denominator: Choose Numerator: = = Dividend Yield Dividend Yield = % 1 Barco = Kyan Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Ret on Tot Assets 2A Tot Asset Turn 2A Ret On Com Stock 2A Div Yield 2A Price Earn Ratio Reg 28 Identify which company's stock you would recommend as the better investment. The better investment

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